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Author Question: You work as a forecaster for a luxury automobile manufacturer. You know that there is a strong ... (Read 43 times)

scienceeasy

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on: Apr 19, 2019

Question 1

There is an opportunity cost associated with


◦ only investments made with borrowed funds.
◦ only investments made with retained earnings.
◦ only investments made with funds received from the sale of new bonds.
◦ every investment project, no matter how it is funded.

Question 2

You work as a forecaster for a luxury automobile manufacturer. You know that there is a strong positive relationship between the demand for luxury automobiles and income levels. The government issues a report predicting that it expects income levels to increase steadily over the next 5 years. All else equal, which of the following courses of action would you recommend to the firm?


◦ Don't change the amount of investment made, but raise the price of luxury automobiles in response to the expected increase in the demand.
◦ Suggest that the firm make an investment in new capital to produce luxury automobiles only after it can verify an increase in income levels.
◦ Start to increase investment now so that when income levels increases and the demand for luxury automobiles increases, the firm will be able to meet the new demand.
◦ Suggest that the firm curtail its advertising to avert a substantial increase in demand for luxury automobiles.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by scienceeasy on Apr 19, 2019

itsakadoozi

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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scienceeasy

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review

ricroger

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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