A manager who does not see his or her goal as the maximization of profit
A. may nevertheless maximize the value of the firm.
B. will likely be replaced either by shareholders or by a takeover of the firm.
C. represents a principle-agent problem.
D. both b and c
Answer: D
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In the above figure, the long-run average cost curve exhibits economies of scale
A) between 5 and 10 units per hour. B) between 10 and 20 units per hour. C) between 20 and 25 units per hour. D) along the entire curve.
All of the following costs are included in the calculation of accounting profit, except
a. Interest payments on borrowed funds b. Costs paid to suppliers for product ingredients c. Opportunity cost of capital d. Depreciation expenses related to investments in buildings and equipment
Explain the relationship between the correlation of payoffs and the risk reducing effects of diversification and hedging.
What will be an ideal response?
Few nations belong to both the World Trade Organization and regional trading agreements.
Select whether the statement is true or false. A. True B. False