The fiduciary responsibility of board members means that they
a. protect the interests of all shareholders.
b. resolve principal-agent problems.
c. make sure the interests of large shareholders are protected first.
d. reject the notion of maximizing shareholder value.
e. none of the above.
A
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The dollar will appreciate if interest rates fall in the United States
Indicate whether the statement is true or false
ABC Company incurs a cost of 50 cents to produce a dozen eggs, while XYZ Company incurs a cost of 70 cents to produce a dozen eggs. Which of the following price increases would cause both companies to experience an increase in producer surplus?
a. The price of a dozen eggs increases from 40 cents to 55 cents. b. The price of a dozen eggs increases from 55 cents to 70 cents. c. The price of a dozen eggs increases from 55 cents to 75 cents. d. All of these price increases would cause both companies to experience a loss in producer surplus.
Which of the following accurately describe where long-run equilibrium happens in the monopolistically competitive firm?
a. At P and q*, long-run demand equals average marginal cost and long-run marginal revenue equals total cost.
b. At 0 and q*, long-run demand equals average total cost and long-run marginal revenue equals marginal cost.
c. At P and q*, long-run demand equals average total cost and long-run marginal revenue equals marginal cost.
d. At 0 and q*, long-run demand equals average marginal cost and long-run marginal revenue equals total cost.
A tax on different kinds of fuels based on their carbon content is called a
A. fossil fuel tax. B. BTU tax. C. carbon tax. D. mitigation tax.