An improvement in product quality leads to an increase in a firm's value by:
A. reducing labor cost.
B. reducing inspection cost.
C. reducing the cost of raw materials.
D. reducing the opportunity cost of production.
Answer: B
You might also like to view...
If a firm operates in a perfectly competitive market, then
A) all firms will advertise. B) no firms will advertise. C) the market leader will advertise. D) new firms will advertise.
In the presence of positive externalities, a free market will choose a price which is too ____ and produce an output which is too ____ compared with the social optimum
a. high; low b. low; low c. high; high d. low; high e. marginal; inequitable
The "Applied Perspective" titled "Cross Elasticity in the Salmon Industry" suggests that the cross elasticity of demand between farm-raised salmon and wild salmon is
a. positive and fairly large so the two types of fish are close substitutes consumers b. positive but close to zero so the two types of fish are in different markets c. negative because consumers like to serve both types as complementary goods d. high so that a price decrease leads to a total revenue increase e. low so that a price decrease leads to a total revenue decrease
One of the most controversial features of the Maastricht Treaty is
A) the lack of ability of individual countries to set their own monetary policies. B) increased control of health and safety measures by the European Commission. C) the free movement of labor throughout Europe. D) the elimination of passport controls in parts of Europe.