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AP Microeconomics
Unit 1 – Basic Economic Concepts
Topic 1.5
Suppose a business owner is considering investing in a new piece of equipment that costs $10,000. The estimated annual revenue generated from the equipment is $5,000. What can be concluded about the investment based on cost-benefit analysis?
The investment should not be pursued because the costs outweigh the benefits.
The investment is financially viable but may not be the most profitable option.
Further analysis is needed to determine the feasibility of the investment.
The investment should be pursued because the benefits outweigh the costs.
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AP Microeconomics - 1.5 Cost-Benefit Analysis
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Cost-Benefit Analysis
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Cram Mode
AP Score Calculators
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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