The management function of a sufficiently large firm should be separated from finance and residual claimancy because of:
a. differences in skill requirements and opportunity costs.
b. differences in attitudes towards risk.
c. differences in investment choices and responsibilities.
d. differences in beliefs about a new strategy's probability of success.
A
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Thomas Edison once said that he began making real profit on light bulbs when he dumped his surplus on the European market at less than the "cost of production." From this we can deduce Edison
a. did not want to maximize profit. b. understood the difference between marginal and average cost. c. had a different definition of the term "profit." d. did not understand the difference between fixed and variable cost.
Economic growth is:
A. a result of having more natural resources, land or capital. B. an increase in our economy's potential output. C. represented by the long-run aggregate supply curve shifting to the right. D. All of these are true.
One of the sources of monopoly power for a monopoly may be:
A. diseconomies of scale. B. differentiated products. C. free entry and exit. D. patents.
Which of the following can make the unemployment rate rise?
A. An increase in the number of people who are looking for work and an decrease in the number of people with jobs. B. A decrease in the number of people who are looking for work. C. A decrease in the number of people with jobs. D. An increase in the number of people who are looking for work.