The current value of a business firm is the present value of all its future profits
Indicate whether the statement is true or false
T This is a reasonable way to characterize the value of a firm, though it is not easy to know the future in order to apply it.
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Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for gasoline
A) the demand curve shifted to the left resulting in a decrease in the equilibrium price. B) the supply curve shifted to the left resulting in an increase in the equilibrium price. C) the demand curve shifted to the right resulting in an increase in the equilibrium price. D) the supply curve shifted to the right resulting in an increase in the equilibrium price.
If price exceeds average total cost in the short run, then in the long run the market demand curve will shift to the right
a. True b. False
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The opportunity cost of one tomato in Country B is:
A. 6 bananas. B. 108 bananas. C. 3 bananas. D. 18 bananas.
An increase in the value of the U.S. dollar internationally, ceteris paribus, would result in
A. Higher revenues for U.S. farmers. B. Lower revenues for U.S. farmers. C. An increase in the dollar value of U.S. farmland. D. An increase in the domestic prices of U.S. farm products.