A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
Three points can be noted here. First, the fact of mutually beneficial trade depends on 'finer' aspects of the actors' preferences (their 'marginal rates of substitution') that are otherwise irrelevant. Second, since the trade is in private goods, no one else is affected and mutually advantageous trade unambiguously increases social welfare. Third, if (say) apples come in season before oranges, B would have to be able to make a credible promise (e.g., by means of an enforceable contract) to A for the gains from trade to be
As it determines the price of the product, and the price based on absorption costing does ensure that all costs are covered. Absorption can provide management with accurate information concerning product cost. The variable method is beneficial by providing an output that is closer to the cash flow of the company that may be short on cash flow. Variable costing aids in the analysis of cost-volume – profit by separating the variable and fixed in the income statement is another benefit. Which method would lead to the best decision when a competitor is submitting a lower bid for your product?
Remember that supply is a schedule of how many units suppliers are willing to offer at different prices. When costs fall, the supply curve increases or shifts to the right. Since changes in producer costs is not a demand factor, there would be no impact on demand. | | | | Points Received: | 10 of 10 | | Comments: | | | | 2. | Question : | (TCO A) Ceteris paribus, coffee Brand X and coffee Brand A are substitutes in consumption.
When the price of a good falls and the price of other goods and a consumer’s income remain the same, explain what happens to the consumption of the good whose price has fallen and to the consumption of other goods. Answer: When the price of a good falls and the price of other goods and a consumer’s income remains the same, there will be more consumption of a good and other goods. 10. If a consumer’s income increases and if all goods are normal goods, explain how the quantity bought of each good changes. Answer: The consumer must determine the quantities of movies and soda that make their marginal utilities per dollar.
How many fields should Henry & Sons plant this spring to maximize profits and what determines this? Henry & sons should plan only one field or more than 8 fields to maximize the profit. This shows that the variable cost is too high which reduce the profit margin for the Henry & Sons. It also shows that the marginal revenue is same for all the quantity they produce. 2.
I. Amount of Apple Juice Produced (ml) vs. Type of enzyme (5 drops) II. Purpose: The objective of this experiment is to test the impact of different enzymes on the production of apple juice. The data received by testing the two enzymes, Pectinase, and Cellulose would show witch enzyme can remove more juice during this process and decide the data would show the most effective plan to increase juice production for a Connecticut company in the business of making and selling apple juice.
With regard to selling products at bargain prices, BBQfun could raise its market volume because the lower price would be an incentive to encourage customers’ purchasing. Concerning about the first marketing opportunity (selling product at bargain prices), the product quality could affect the implementation of this opportunity or even rule out it. It is - Cutting cost of products lowers the product quality: this situation could happen if BBQfun only focuses on cutting cost of products and lacks attention to product quality. In order to make this marketing opportunity feasible, BBQfun needs to lower cost of products but ensures the product
When the government prevents prices from adjusting naturally to supply and demand, efficiency is improved in the economy. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxviii]. A market economy cannot possibly produce a socially desirable outcome because individuals are motivated by their own selfish interests. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxix]. While the invisible hand cannot guarantee efficiency, it is better at guaranteeing equity.
One might explain this apparent contradiction by noting that employers value agreeable employees for other reasons: They are more pleasant to be around, and they may help others in ways that aren't reflected in their job performance. While the former point seems fair enoughagreeable people are better liked-it's not clear that agreeable individuals actually help people more. A review of the "organizational citizenship" literature revealed a prettSr "neak correlation between an employee's agreeableness and how much he or