A Business Person Would Most Likely Invest If the Expected

question 119

Multiple Choice

A business person would most likely invest if the expected profit rate were ______ and the interest rate were _____ percent.

• A)20;14
• B)14;20
• C)6;6
• D)5;4
• E)3;20

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Definitions:

Labor Hours

The number of hours worked by employees for the production of goods or services.

Machine Hours

A measure of production or work performed, calculated as the number of hours a machine is operated.

Lease

A contractual agreement where one party (the lessor) allows another party (the lessee) to use an asset for a specified period in exchange for payment.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the quantity of output produced, representing the average cost per unit of output.