If future benefits are underestimated by a firm,
A. the firm will invest too little in capital.
B. the firm will only sell bonds to invest in capital.
C. the firm will use only retained earnings to invest in capital.
D. the firm will invest too much in capital.
Answer: A
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Goods with small substitution effects tend to be normal goods.
Answer the following statement true (T) or false (F)
If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought ________
A) increases and the price might rise, fall or not change B) increases and the price rises C) doesn't change and the price falls D) doesn't change and the price rises
The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. An increase in the wage rate for labor leads to
A) an increase in the quantity of labor demanded. B) a decrease in the quantity of labor demanded. C) an increase in the demand for labor. D) a decrease in the demand for labor.
Refer to Table 1-2. What is Julius's marginal benefit if he decides to stay open for three hours instead of two hours?
A) $15 B) $25 C) $65 D) $80