Which of the Following Statements Is True

question 73

Multiple Choice

Which of the following statements is true?

• A)The profitability of any product innovation is negatively related to the size of the stream of expected net cash flows from selling the services.
• B)The profitability of any product innovation is positively related to the size of the stream of expected net cash flows from selling the services.
• C)The profitability of any product innovation is unrelated to the size of the stream of expected net cash flows from selling the services.
• D)The relationship depends on the FI's individual situation.

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Definitions:

Marginal Costs

The change in total production cost that arises when the quantity produced is incremented by one unit.

Investment

The allocation of resources, usually money, in order to gain profitable returns as interest, income, or appreciation in value.

Workers

Individuals who perform tasks or jobs for pay, ranging from manual labor to professional occupations.

Units

In economics, units refer to the quantifiable measures used to express the quantity of an item, such as pieces, kilograms, liters, etc., used in transactions or production.