If investors became more risk averse The SML would shift downward and the slope of the SML would fall

Indicate whether this statement is true or false.

Answer: FALSE

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Valuable Electronics uses a standard part in the manufacture of different types of radios

The total cost of producing 42,000 parts is $100,000, which includes fixed costs of $40,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $1 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. If Valuable outsources, what will be the effect on operating income? A) increase of $42,000 B) decrease of $42,000 C) decrease of $8,000 D) increase of $16,000

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Why is it important for marketing managers to know the motivations underlying the sample size recommendations of the researchers that they hire?

A) A manager's cost may be unnecessarily inflated. B) Unethical researchers may use large sample sizes to increase profits. C) Unethical researchers may have ownership in a data collection company. D) Researchers' profits may be a percentage of total costs. E) all of the above

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