A Firm Can Profitably Purchase an Asset If the Asset's

question 38

Multiple Choice

A firm can profitably purchase an asset if the asset's net present value is:

• A) less than zero.
• B) negative.
• C) positive.
• D) less than zero but greater than minus one.

---

Definitions:

Standard Product

A product that is uniform in quality and specifications, produced in large quantities, and often interchangeable with similar products from other manufacturers.

Highest Price

The maximum price at which a good, service, or asset is sold in the market, often influenced by factors such as scarcity, demand, and quality.

Pure Monopolist

An entity that is the sole provider of a particular product or service in a market, without any competitors, effectively controlling the market.

Increase Price

A strategy or action where the selling price of goods or services is raised to generate higher revenue or cope with increased costs.