For a Horizontal Demand Curve

question 165

Multiple Choice

For a horizontal demand curve,

• A)the slope is undefined,and the price elasticity of demand is equal to 0.
• B)the slope is equal to 0,and the price elasticity of demand is undefined.
• C)both the slope and price elasticity of demand are undefined.
• D)both the slope and price elasticity of demand are equal to 0.

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Definitions:

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

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Internal Rate of Return

A financial metric used to estimate the profitability of potential investments through a percentage rate return.

Mutually Exclusive Projects

Projects or investment options where the acceptance of one option necessarily excludes the others from consideration due to constraints such as budget.