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
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
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