Fill in the Blanks in the Following Questions

Short Answer

Fill in the blanks in the following questions. Some blanks require TWO words.
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a. ____________________ provides the foundation for understanding strategic decisions through the application of game theory.
b. The everyday business decisions managers routinely make in running a business are frequently referred to as __________________________.
c. Strategic decisions seek to alter the ________________ of rival firms in order to protect the long-run _____________ of the firm.
d. When a firm earns zero economic profit, __________________________ equals total economic cost and ____________________ profit is positive.
e. _______________ profit best measures the performance of a firm because it considers all the costs to a firm of using resources.
f. The value of a firm is ________________ (larger, smaller) the higher is the risk premium used to compute the firm's value.

g. In markets characterized by monopolistic competition, a large number of relatively small firms sell a ____________________________ product.
h. The value of a firm is ________________ (larger, smaller) the lower is the risk premium used to compute the firm's value.
i. The difference between accounting and economic profit is equal to the costs the firm incurs for using ______________________ resources.
j. In corporations, the principals are the ____________________ and the agents are the _______________.
k. Agency problems for firms arise because of moral _______________.
l. Equity ownership is one of the most effective mechanisms for improving corporate __________________ .
m. The value of the monitoring service provided by boards of directors is enhanced by appointing _____________________ and by linking directors' compensation to the _______________ of the firm.
n. Increasing output in order to decrease ____________________ is a common mistake managers make.
o. The pursuit of market _________________ is not usually going to maximize profit or the value of the firm.
p. Maximizing profit margin _________(is, is not) generally consistent with maximizing profit and the value of the firm.
q. Managers that make pricing and output decisions with the goal of maximizing total revenue _______ (will, will not) be maximizing profit in most circumstances.