Answer to Question #3775 in Microeconomics for ashrita

Question #3775
What effect would each of the following have on the value of the firm? (a) A new advertising campaign increases the sales of the firm substantially. (b) A new competitor enters the market. (c) The production department achieves a technological breakthrough, which reduces production cost. (d) The firm is required to install pollution-control equipment. (e) The work force votes to unionize. (f) The rate of interest rises. (g) The rate of inflation changes.
1
Expert's answer
2012-03-20T11:29:36-0400
Please see the answer after questions
What effect would each of the following have on the value of the firm?(a) A new advertising campaign increases the sales of the firm substantially. - will increase value of the firm
(b) A new competitor enters the market.
(c) The production department achieves a technological breakthrough, which reduces
production cost.- will increase value of the firm
(d) The firm is required to install pollution-control equipment.- will increase value of the firm
(e) The work force votes to unionize. - will effect value of the firm
(f) The rate of interest rises. - will effect value of the firm
(g) The rate of inflation changes.

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