Maximizing the lifetime value of the firm is equivalent to maximizing the firm's current profits if the:
A. growth rate of profits and the interest rate are equal.
B. interest rate is larger than the growth rate in profits and both are constant.
C. interest rate is smaller than the growth rate of profits.
D. growth rate in profits is constant and is larger than the interest rate.
Answer: B
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The equilibrium price of a good sold in a competitive market is $10. If an individual firm decides to sell its product at a price higher than $10, ________
A) the firm's profits will increase B) the firm's revenue will increase C) the firm will lose all its consumers D) the firm's cost of production will decrease
Refer to Table 19-18. What is real GDP in 2016, using 2016 as the base year?
A) $28,885 B) $11,790 C) $11,200 D) $10,275
Exogenous changes in spending refer to changes in planned spending:
A. caused by changes in output. B. caused by changes in the real interest rate. C. not caused by changes in output or changes in the inflation rate. D. caused by changes in the inflation rate.
Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, the market clearing price ________ and the equilibrium quantity ________
A) definitely falls, is indeterminate B) is indeterminate, definitely falls C) definitely falls, definitely rises D) definitely rises, is indeterminate