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Which of the Following Statements Is Most Correct

Question 3

Multiple Choice

Which of the following statements is most correct?


A) Firms that try to maximize their stock values will tend to lay off employees to cut costs.
B) Firms that try to maximize their stock values will raise the prices of their products, gouging customers and driving them away.
C) Anti-pollution laws are unnecessary because firms will choose not to pollute because that is in their best interests.
D) The government should allow monopolies to operate without regulation so that they may maximize their shareholders' wealth.
E) Newly-privatized firms generally hire more employees.

Correct Answer:

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