. Suppose the growth rate of the firm’s profit is 5%, the interest rate is 6%, and the current profits of the firm are 80 million dollars: What is the value of the firm?
  • $8,480 million
Which is the correct statement about the relationship between government and the market?
  • Government often plays a role in disciplining the market process
Trade will take place:
  • If the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good
Which of the following is not the source of rivalry that exists in economic transactions?
  • Government-producer rivalry
Incentive plans imply:
  • If managers put forth little effort, they receive little pay; if they put forth much effort and hence generate many sales, they receive a lot of pay
Which of the following is the incorrect statement?
  • The difference in the slope of the total benefit curve and the total cost curve is maximized at the optimal level of Q
Maximizing total benefits is equivalent to maximizing net benefits if and only if there are:
  • No costs associated with achieving more benefits
In order to maximize net benefits, the managerial control variable should be used up to the point where:
  • Net marginal benefits equal zero