1. How does the theory of the firm differ from short-term profit maximization? Why is the former superior to the latter?
2. What effect would each of the following have on the value of the firm? explain.
a. A new advertising campaign increases the sales of the firm substantially
b. A new competitor enters the market.
c. The firm is required to install pollution control equipment
This long-lasting quarantine period has undoubtedly shaken up the world. From the economy to health care, and even to schools…
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