Aggregate Demand (AD) = C + I + G + (X-M). I = ________.
A. interest rates
B. industry
C. investment spending
Answer: C. investment spending
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A firm's fundamental goal is
A) different for each firm. B) to make a quality product. C) to maximize profit. D) to gain market share. E) to decrease its employment of workers in order to cut its costs.
Refer to the table below. If the senior manager learns that either a Good or Poor market will exist when the drug is introduced to the market, which drug should the senior manager not pursue?
The senior manager of Rx Pharmaceuticals needs to decide which of three drugs the company should consider developing. The estimated profit for each of the drugs differs depending on the market conditions when the respective drugs are introduced to the market. The above table summarizes the estimated profit for each drug under each of the three market conditions; Good, Fair, and Poor.
A) Drug Y
B) Drug X
C) Drug Z
D) all of the drugs
Which of the following statements concerning opportunity costs is false?
a. Opportunity costs are only expressed in money terms. b. Every choice involves opportunity costs. c. Opportunity costs are the highest-valued alternatives that must be forgone when a choice is made. d. The concept of opportunity cost is used to demonstrate scarcity. e. Economists refer to the forgone benefits of the next-best alternative as opportunity costs.
When making choices, suppliers should not allow sunk costs to directly affect their current decisions because
a. sunk costs do not reflect foregone opportunities accompanying current choices. b. sunk costs will not influence the accounting costs of a firm. c. sunk costs influence the demand for products, not the supply. d. past choices fail to provide any information relevant to current decision making.