Owners of a firm want the managers to make business decisions which will
A. maximize the value of the firm.
B. maximize expected profit in each period of operation.
C. maximize the market share of the firm.
D. both a and b are correct when revenue and cost conditions in one time period are independent of revenues and costs in future time periods.
Answer: D
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When less than the efficient amount of a good is produced, how does the marginal social benefit of the last unit produced compare to its marginal social cost?
What will be an ideal response?
Which of the following would be considered a component of government purchases?
a. Both d and e b. All of the following c. Welfare payments d. Police salaries e. Social security payments
If people buy less flowers at every price when their incomes fall, then
a. flowers are a normal good. b. the demand for flowers is positively sloped. c. demand for flowers has increased. d. the price of flowers has increased. e. there has been a decrease in population that changed demand.
The Fed Chairman has authority and responsibility for federal budget deficits.
a. true b. false