Suppose an owner makes a substantial operating loss while owning a team. If history is any guide, the money lost will be
A. compounded by the fact that the team will lose even more money when he sells the team.
B. just about offset by the slight gain the owner will get when he sells the team.
C. much more than offset by the enormous gain the owner will get when he sells the team.
D. slightly more than offset by the gain the owner will get when he sells the team.
Answer: C
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In reality, decisions made by firms may not always produce maximum total profit because some executives
a. are more motivated by altruism. b. are more interested in market share than profits. c. may push research and development to the point that profits decline. d. All of the above are correct.
Exchange rates in what is termed the "medium run"
a. will be altered by an economic upswing because consumers buy more goods including imports when disposable income goes up. b. will be unaffected by economic changes in personal income or consumption spending. c. will appreciate for a country having an economic boom when others are not. d. All of the above are correct.