QUESTION 15 1 points Save Answer Which of the following is a common mistake mana

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QUESTION 15 1 points Save Answer Which of the following is a common mistake managers make? Using marginal analysis to make output decisions. Maximizing the value of the firm instead of maximizing the firm's profits. Treating implicit opportunity costs as part of the total costs of using resources. Reducing price to increase the firm's share of total market sales. all of the above. QUESTION 16 1 pointsSave Answer The value of a firm is larger the higher is the risk premium used to compute the firm's value. the price for which the firm can be sold minus the present value of the expected future profits. smaller the higher is the risk premium used to compute the firm's value. both b and c QUESTION 17 1 points Save Answer Which of the following is NOT a characteristic of monopoly market structures? No close substitutes for the product are available O A single firm produces the entire market output The easier consumers can find imperfect substitutes for the firm's product the lower will be the firm's market power. There are no barriers to entry.

Explanation / Answer

Ans 15) the correct option is reducing price to increase the firms share of total market sales. Manager reduce unit costs of production by increasing the rate of production.

Ans 16) the correct option is the smaller the higher is the risk premium used to compute the firm's value.

Ans 18) the correct option is there are no close substitutes. In monopoly, there is only firm producing the output and there is no free entry and exit of firms.

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