Essay about Marginal Cost and Correct Answer

1413 Words Oct 29th, 2012 6 Pages
Question 1
The primary objective of a for-profit firm is to ___________.
Selected Answer: Correct Answer:

5 out of 5 points

maximize shareholder value maximize shareholder value

Question 2

5 out of 5 points

The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?
Selected Answer: Correct Answer:

innovation theory of profit innovation theory of profit

Question 3

5 out of 5 points

The Saturn Corporation (once a division of GM) was permanently closed in 2009. What went wrong with Saturn?
Selected Answer: Correct Answer:

Saturn sold cars below the prices of Honda or
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dollar relative to a trading partner can result from
Selected Answer: Correct Answer:

higher growth rates in the trading partner's economy higher growth rates in the trading partner's economy

Question 24

5 out of 5 points

If the domestic prices for traded goods rises 5% in Japan and rises 7% the US over the same period, what would happened to the Yen/US dollar exchange rate? Hint: S1/S0 = (1+πh) / (1+ πf) where S0 is the direct quote of the yen at time 0, the current period.
Selected Answer: Correct Answer:

The direct quote of the yen ($/¥) falls, and the value of the dollar rises. The direct quote of the yen ($/¥) falls, and the value of the dollar rises.

Question 25

5 out of 5 points

Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:
Selected Answer: Correct Answer:

decreasing returns to scale decreasing returns to

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