Question 16 A firm that is considering one independent project should accept it if
Selected Answer: the internal rate of return on the project exceeds the firm ' s cost of capital
Question 17 A monopolist faces a marginal revenue function of MR = 20 Q. The monopolist ' s
marginal cost is $ 15 at all levels of output. How many units of output should the firm
produce in order to maximize profits? Question 18 Which of the following is always illegal in the U. S.? Question 19 The restaurant industry has a market structure that comes closest to Question 20 Which of these deals with asymmetry of information? Question 21
If an increase in output by a firm imposes uncompensated costs on other firms, these costs
are referred to as Question 22
A firm can borrow at an interest rate of 5 %. Its marginal tax rate is 40 %. What is its cost of