Value maximization means
A) that managers make decision so as to increase the long-run market value of the financial claims on the firm.
B) that a firm should make products that have the highest price.
C) that managers make decision so as to increase the short-run market value of the financial claims on the firm.
D) all of these choices.
A
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In order to infer expected future exchange rates, we must have a forward exchange market in a currency
Indicate whether the statement is true or false
What is the main cause of shifting the aggregate supply curve?
a. Changes in productivity b. Changes in amount sold c. Changes in amount demanded d. Changes in costs
If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect that
a. the demand for products in this industry would increase. b. the market price of products in this industry would decrease in the short run but not in the long run. c. the firms in the industry would make a long-run economic profit. d. competition would force producers to pass the lower production costs on to consumers in the long run.
If the demand curve for bologna shifts to the right as income falls then bologna is a(n):
A. complementary good. B. substitute good. C. normal good. D. inferior good.