The Bigger the Shortage of a Good or Service,the ____________

question 17

Multiple Choice

The bigger the shortage of a good or service,the ____________ the seller of the good or service will be to an individual customer _________.(We are assuming here that the shortage cannot,for legal reasons,be alleviated through a rise in price.)

• A) more polite; without having sales adversely affected
• B) ruder; without having sales adversely affect
• C) more polite; even though sales will be adversely affected
• D) ruder; even though sales will be adversely affected

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Definitions:

Payback Period

The length of time it takes for an investment to generate an amount of cash flow equal to the initial amount invested.

NPV

Net Present Value, a financial metric used to evaluate the profitability of an investment or project, calculated by discounting the expected future cash flows to present day values and subtracting the initial investment cost.

Discounted Payback Period

The time required to recoup the cost of an investment while accounting for the time value of money, typically used in capital budgeting to assess profitability.

After-Tax Cash Inflows

The net cash that a business generates after accounting for all taxes.