a) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether “true “ or “false”).
Suppose that you own STL Burgers at the airport. If another shop (Macro Burgers) opens at the airport, then you’d expect that the absolute-value of Ed for your product would decrease.
b) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether “true “ or “false”).
Suppose that you are a manager of a shoe company. Producing more shoes will always translate into more profits because more shoes means more revenues.
c) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether “true “ or “false”).
A Wall Street Journal headline that says “Saints Corp.’s 2012 Income Up by 5% Over Year Ago” indicates that Saints Corp.’s sales were higher in 2012 than in 2011.
d) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether “true “ or “false”).
If a firm is earning positive accounting profits, then it must also be earning some economic profits.