Author Question: The term capital budgeting refers to decisions A) which are made in the short run. B) which ... (Read 55 times)

APUS57 · **on:** Jul 1, 2018

The term capital budgeting refers to decisions

A) which are made in the short run.
B) which concern the spreading of expenditures over a period lasting less than one year.
C) where expenditures and receipts for a particular undertaking will continue over a relatively long period of time.
D) where a receipt of cash will occur simultaneously with an outflow of cash.

Question 2

A firm that operates in Stage III of the short-run production function

A) has too much fixed capacity relative to its variable inputs.
B) has too little fixed capacity relative to its variable inputs.
C) has greatly overestimated the demand for its output.
D) should try to increase the amount of variable input used.