Use the Figure for the Question(s)below

question 21

Multiple Choice

Use the figure for the question(s) below.
-The graph above shows the break-even analysis for the cost of making a certain good. Based on this chart, which of the following is true?

• A)The project should not be undertaken if the predicted cost of goods sold is less than $110.
• B)The net present value (NP
• V)of the project increases with increased cost of goods sold.
• C)If the good costs $110 to make, the net present value (NP
• V)of the project will be zero.
• D)The net present value (NP
• V)of the project will be positive if the cost of goods sold is greater than $110.

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Definitions:

Transcontinental Railroad

A railway system that connects the Atlantic and Pacific coasts of the United States, completed in 1869 to facilitate commerce and the movement of people.

Federal Land Grants

Land given by the government to support various endeavors, such as the building of railroads or educational institutions.

Italian Immigrant Laborers

Refers to immigrants from Italy who, particularly during the late 19th and early 20th centuries, worked in various sectors in their new countries, often facing challenging conditions.

Economies of Scale

The cost advantages that enterprises enjoy due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.