Multiple Choice
The abnormal net income model
A) assumes that economic profits cannot be earned in the short run.
B) assumes that economic profits cannot be earned in the long run.
C) employs economic profit in its valuation of a firm.
D) none of these choices.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: According to economic theory, profits are maximized
Q2: Managers should do more of an activity
Q3: If firms are exiting a market then<br>A)economic
Q5: By seeking economic profit, managers are seeking
Q6: A firm needs to maximize the value
Q7: Adding value means<br>A)to make products that have
Q8: Competitive firm can earn economic profits over
Q9: If a firm does not maximize value<br>A)it
Q10: Warrantees do not contribute to market power.
Q11: Entry of new firms causes<br>A)accounting profits to