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Answer to Question #20689 in Economics of Enterprise for mesfin
Question #20689
The production department achieves a technological breakthrough, which reduces
production cost.- will increase value of the firm
production cost.- will increase value of the firm
Expert's answer
The production department achieves a technological breakthrough, which reduces production cost. It will increase value of the firm, because the costs are reduced, as it has invested in a positive NPV investment in technology.
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