The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products
Indicate whether the statement is true or false.
TRUE
The way to increase the profitability of a firm is to create more value. The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products. In general, the more value customers place on a firm's products, the higher the price the firm can charge for those products.
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All else held constant, which one of the following will decrease if a firm increases its net income?
A. Return on assets B. Profit margin C. Return on equity D. Price-sales ratio E. Price-Earnings ratio
Consumers rely on word-of-mouth communications when choosing services, which makes the authoritative executional framework work well
Indicate whether the statement is true or false