If the Going Rate of Interest Were 10 Percent and the Expected

question 22

Multiple Choice

If the going rate of interest were 10 percent and the expected profit rate were 18 percent,then the opportunity cost of a firm carrying out a $100,000 project for one year with its own funds would be

• A)0.
• B)$8,000.
• C)$10,000.
• D)$18,000.

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Definitions:

Adaptive Response

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A thing that is accepted as true or as certain to happen, without proof.