Which of the Following Are Value Drivers (I

question 90

Multiple Choice

Which of the following are value drivers (i.e. create value for the business) ?
i. Growth
ii. Sustainability
iii. Spread
iv. Cost of capital

• A) i, ii and iii
• B) ii, iii and iv
• C) i, iii and iv
• D) All of the given answers

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Definitions:

MR = MC Rule

An economic principle that states a firm will maximize its profit when its marginal revenue equals its marginal cost.

Additional Unit

Refers to the next unit of a good or service to be produced or consumed, often discussed in the context of marginal analyses, such as marginal cost or marginal utility.

MR = MC Rule

The MR=MC rule states that profit maximization occurs when a firm produces at a level where marginal revenue equals marginal cost.

Price Taker

A market participant that accepts market prices as given and cannot influence those prices.