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The form of economics most relevant to managerial decision-making within the firm is:
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable if:
In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ____ discounted at the stockholders' required rate of return.
Which of the following statements concerning the shareholder wealth maximization model is (are) true?
According to the profit-maximization goal, the firm should attempt to maximize short-run profits since there is too much uncertainty associated with long-run profits.
According to the innovation theory of profit, above-normal profits are necessary to compensate the owners of the firm for the risk they assume when making their investments.
If country desires to smooth consumption, explain how much it should borrow in period 0. Illustrate what will level of consumption and trade balance is from then on.
When there is an increase in the expected rate of inflation, will the nominal and real interest rates on new loans increase, decrease, or stay constant?
Discuss the positive aspects of globalization and contrast these with the negative aspects of globalization from the perspective of a small business. Be sure to address to pros and cons of outsourcing in your response.
Explain how did Flextronics' industrial park strategy enable the company to respond to national changes in relative factor costs.
Using the formula for β^1 and β^0, show what will happen to the estimator of the slope and intercept in the SLR model if y is multiplied by the constant k, and at the same time x is multiplied by the constant m.
In customer theory there are some useful analytic results that can come from studying homothetic utility functions of consumption for each.
The country of Meditor uses the merit as its currency. What were its consumption and government expenditures on goods and services.
what is the marginal utility of X? If a consumer moves downward along an indifference curve, what happens to the marginal utilities of X and Y? What happens to the MRS?
illustrate what would you estimate the difference between the inflation rates of the U.S. also Japan.
What is the dominant source of capital funding in the United States? Given this result and the fact that most corporations are net borrowers, what decisions must most managers face in order to address this financial deficit?
Even though the use of checks lower transaction costs when compared to the use of paper currency, it is unlikely that the use of paper or metallic currency will disappear entirely. Why?
What is the impact of the trade surplus or trade deficit upon the interest rates and currency exchange rates.
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