If You Plotted the Future Value of $1000 Growing at Any

question 61

Multiple Choice

If you plotted the future value of $1000 growing at any interest rate greater than 0 with dollars on the vertical axis and time on the horizontal axis, the resulting curve would [blank].

• A)slope upward at a constant rate
• B)eventually become parallel to the horizontal axis
• C)slope upward at a decreasing rate
• D)slope upward at an increasing rate

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Definitions:

Accounting Profit

The net income a company reports on the financial statements, calculated by subtracting total expenses from total revenues.

Economic Profit

The variance between what a business earns in total and what it spends, counting both actual expenses and notional costs.

Efficient Output

The level of production where the maximum possible output is achieved with the given resources and technology, minimizing waste and cost.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services in exchange for money.