In the real intertemporal model with investment
A) the firm maximizes the present value of profits.
B) the firm maximizes current profits.
C) the firm maximizes the present value of revenues.
D) the firm maximizes current profits plus future profits.
A
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Advertising by the monopolist
a. is not done because the monopolist has the only supply of the product and doesn't need to advertise. b. would have the effect of shifting its demand curve to the left. c. may lead to expanded production by the monopolist. d. makes no sense because there are no substitute commodities available to consumers.
Payroll taxes (Social Security and Medicare) are:
A. progressive, leading to a more equitable distribution of income. B. proportional, because all pay the same rate. C. progressive, like the federal income tax. D. regressive, because the tax applies to only a fixed amount of income.
Under which conditions might diseconomies of scale result?
A. hampered coordination brought about by bureaucracy B. decreasing costs of inputs C. increasing output prices D. usage of a large amount of indivisible inputs by the firm
The utility that people experience from the consumption of a good depends on
A. their income level. B. total sales of the good. C. their tastes and preferences. D. how much shopping time they spent obtaining the good.