A benefit of the monopolistic advantage theory is that firms can operate foreign subsidiaries more profitably than the local firms that compete in their own markets

Why does the government carefully monitor horizontal mergers?

(A) Employee layoffs usually result. (B) The new firm may discontinue some of the original firms' products. (C) It's possible for control to shift to a foreign-owned corporation. (D) The resulting single firm might gain monopoly power in its market.

Which of the following statements is (are) true regarding the net present value of a capital investment? I. Net present value does not consider time value of money. II. A positive net present value represents an increase in value to the firm

A) I only B) II only C) both I and II D) neither I nor II