Decreasing Which One of the Following Will Increase the Acceptability

question 85

Multiple Choice

Decreasing which one of the following will increase the acceptability of a project?

• A)sunk costs
• B)salvage value
• C)depreciation tax shield
• D)equivalent annual cost
• E)accounts payable requirement

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Definitions:

Short-Run Profits

Profits earned during a brief period of time, not considering long-term investments or fixed costs.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for significant competition.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, each having some market power.

Economic Profits

The extra amount businesses earn after subtracting all of their costs, including opportunity costs.