As long as the revenue of the last unit produced and sold is greater than the cost of the last unit produced and sold, a firm should:
A. continue manufacturing
B. not use formula pricing
C. continue using price equilibrium
D. consider using sales maximization pricing
E. reach its break-even point very shortly
Answer: A
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MPR is best described as
A) a marketing measurement system. B) an element in the marketing communications mix. C) synonymous with traditional public relations. D) often directly responsible for sales of goods and services. E) the theoretical basis of all marketing efforts.
Businesses have learned that unethical behavior
a. is sometimes required when persuading people in lower socioeconomic groups. b. is sometimes justified when the desired action is achieved. c. is always followed by negative legal repercussions. d. is not good for business in the long run.
Project risks can be classified as
A) qualitative risks. B) quantity risks. C) low-volume risks. D) internal risks.
Which of the following statements is CORRECT?
A. The WACC is calculated using before-tax costs for all components. B. The after-tax cost of debt usually exceeds the after-tax cost of equity. C. For a given firm, the after-tax cost of debt is always more expensive than the after-tax cost of non-convertible preferred stock. D. Retained earnings that were generated in the past and are reported on the firm's balance sheet are available to finance the firm's capital budget during the coming year. E. The WACC that should be used in capital budgeting is the firm's marginal, after-tax cost of capital.