Which of the Following Is (Are) True

question 129

Multiple Choice

Which of the following is (are) true?

• A) Interest rates can be used to compare values of payments that will occur at different times.
• B) Choices concerning capital and natural resources do not involve the use of interest rates.
• C) The concept of present value cannot be applied to a series of future payments.
• D) A and B are true.

---

Definitions:

Marginal Cost

The cost of producing one additional unit of a product.

Additional Unit

The next unit of production or consumption, considered in analysis of changes in benefit or cost from increasing quantity.

Fixed Cost

Business expenses that remain constant regardless of the level of production or sales activity, such as rent or salaries.

Lease Payments

Regular payments made by a lessee to a lessor for the use of a property, vehicle, or equipment.