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Eco Midterm

In: Business and Management

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Question 1 .4 out of 4 points Correct A Real Option Value is:
Answer
Selected Answer: An opportunity to implement cost savings or revenue expansion in a flexible business plan.
Correct Answer: An opportunity to implement cost savings or revenue expansion in a flexible business plan. . Question 2 .4 out of 4 points Correct Recently, the American Medical Association changed its recommendations on the frequency of pap-smear exams for women. The new frequency recommendation was designed to address the family histories of the patients. The optimal frequency should be where the marginal benefit of an additional pap-test:
Answer
Selected Answer: equals the marginal cost of the test Correct Answer: equals the marginal cost of the test

. Question 3 .4 out of 4 points Correct Which of the following will increase (V0), the shareholder wealth maximization model of the firm: V0∙(shares outstanding) = Σ∞t=1 (π t ) / (1+ke)t + Real Option Value.
Answer
Selected Answer: Decrease the required rate of return (ke).
Correct Answer: Decrease the required rate of return (ke). . Question 4 .4 out of 4 points Correct Economic profit is defined as the difference between revenue and ____.
Answer
Selected Answer: total economic cost
Correct Answer: total economic cost . Question 5 .4 out of 4 points Correct Shirking of one’s duties is often encountered in team production settings because
Answer
Selected Answer: teammates face a dilemma posed by a dominant strategy to shirk
Correct Answer: teammates face a dilemma posed by a dominant strategy to shirk . Question 6 .4 out of 4 points Correct The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of...

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