The ________ Measures the Amount of Time It Takes a Firm

question 106

Multiple Choice

The ________ measures the amount of time it takes a firm to recover its initial investment.

• A) profitability index
• B) internal rate of return
• C) net present value
• D) payback period

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Definitions:

Market Price

The amount of money for which a good or service is offered, sold, or bought in the market.

Cost

The value of the inputs used in the production of goods or services, including money, time, and resources.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, often seen as profit.

Producer Surplus

The disparity between the price suppliers are ready to settle for when selling a good or service and the greater amount they end up receiving.