One of the benefits of decentralization is that
A. there are economies of scale if local managers make pricing decisions.
B. it lowers the opportunity cost of the time of the higher management.
C. local managers have a strong incentive to maximize a firm's value.
D. full use can be made of the central manager's knowledge and expertise.
Answer: B
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Refer to Table 13-4. At Victoria's profit-maximizing output
A) total revenue equals $24 and total cost equals $20. B) profit equals $2. C) total revenue equals $21 and total cost equals $17. D) total revenue equals $25 and total cost equals $22.
Economists assume that, in general, when individuals are faced with two choices that have the same expected value, they will prefer:
A. the one with lower risk. B. the one with higher risk. C. the one with the higher opportunity cost. D. the one with the lower future value.
If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $50,000 B. $12,500 C. $37,500 D. $40,000
The supply of stock
A) comes from new issues. B) comes from current shareholders. C) comes from new shares and current stockholders. D) comes from new shares, current stockholders, and the Federal Reserve.