Use this graph of the cost and demand curves facing a pure monopoly firm to answer the questions on this page. You will want to add the Marginal Revenue curve to the diagram. 16 15 14 13 12 Marginal Cost 10 Demand 4 6 Quantity 19. How many units of output will this firm produce? 20. What will this firm's total revenue be? 21. What is consumer surplus in this market? 22. If this monopoly were broken into many competing firms and there were no a.1 b.2 c. 3 d.4 .5 a. $0 b. $24 c. $30 d. $14 e. infinite economies or diseconomies of scale, how many units of output will the competitive market produce? a.1 b.2 c.3 d. 4 e.5 23. If this monopoly were broken into many competing firms and there were no economies or diseconomies of scale, what would the price be in a competitive market? a. $8 b. $10 c. $12 d. $14 e. $16 Which of the following statements is correct? C The payback period is the length of time it takes for an investment to recoup its A) own initial cost out of the cash receipts it generates o B)Projects with shorter payback periods are always more profitable than projects with longer payback periods. The payback method of making capital budgeting decisions gives full consideration to the time value of money. If new equipment is replacing old equipment, any salvage received from sale of ( c) equipment should not be considered in computing the payback period of D) the old the new equipment Hogan Company has gathered the following data on a proposed investment project Discount rate Life of the investment Investment required in equipment Anmual cash inflows Salvage value What is the payback period for the proposed investment? 10% 10 years $400,000 80,000 A) 02 years B)1.0 years 3.0 years 5.0 years C) D) Hogan Company has gathered the following data on a proposed investment project. Discount rate Life of the investment Investment required in equipment Annual cash inflows Salvage value (Note that this is the same data that was provided for the previous question.) What is the net present value on the proposed investment? 10% 10 years $400,000 80,000 C $96,720 B)s80,000 S91,600 A) C)