A retailer X that is operating at a loss gets bought out by a larger chain of department stores, which shuts down the brand, using its assets for their own brand,
a. Wealth is destroyed since the company shut down
b. Wealth is created since the resources were of lesser value under the X brand and are now worth more
c. Wealth is neither created nor destroyed since the total amount of resources stay the same
d. None of the above
b
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If the U.S. government places tariffs on imports from countries that have been accused of deliberately undervaluing their currencies, the price of these imports will ________ and the demand for the undervalued currency will ________
A) rise; fall B) fall; rise C) rise; rise D) fall; fall
You believe that a corporation's dividends will grow 5% on average into the foreseeable future. If the company's last dividend payment was $5 what should be the current price of the stock assuming a 12% required return?
What will be an ideal response?
Although economic science can contribute theoretical and factual knowledge on a particular issue, the final decision on policy questions often depends on:
a. information that is not currently available b. social values c. ethical considerations d. all of these
Refer to the accompanying table. As the firm increases the number of employees per day each day from 1 to 2, output increases by:Output Per DayNumber of Employees Per Day00331662994132716511
A. 33 units. B. 132 units. C. 99 units. D. 66 units.