Reference no: EM133126534

1. Petron, Shell and Caltex are an example of oligopolistic market. *

True

False

2. Vegetables being sold at SM are an example of a pure competition. *

True

False

3. A single local cable tv is an example of a monopoly, *

True

False

4. A purely competitive firm produces less negative externality than a monopoly. *

True

False

5. If the cost of an investment in 2000 is Php 500,00 and the returns are the following: Php 200,000 each for the next 5 years, the investment is therefore recovered after 2 and a half years. *

True

False

6. Using a simple payback period is the most reliable method of evaluating whether an investment is profitable. *

True

False

7. We discount future returns because money decreases in value over time due to inflation. *

True

False

8. Political instability is a source of uncertainty in the profit maximization of the firms, *

True

False

9. The country has a good record of prosecuting politicians who commit plunder. *

True

False

10. A biased implementation of the rule of law is a disincentive to businessmen who want to compete fairly, *

True

False