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Author Question: When a firm ignores the opportunity cost of capital when making investment or shutdown decisions, ... (Read 81 times)

krzymel

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  • Posts: 548
on: Jul 1, 2018
When a firm ignores the opportunity cost of capital when making investment or shutdown decisions, this is a case of
 a. Fixed-cost fallacy
  b. Sunk-cost fallacy
  c. Hidden-cost fallacy
  d. None of the above

Question 2

According to the purchasing power parity, if the price level in the US rises relative to Mexico
 a. The dollar will appreciate relative to the peso
  b. The dollar will depreciate relative to the peso
  c. There is no effect on either currency
 d. None of the above


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guyanai

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Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

b


krzymel

  • Member
  • Posts: 548
Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

cici

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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