Firms often involve themselves in projects that do not result directly in profits. For example, Apple,...

Firms often involve themselves in projects that do not result directly in profits. For example,
Apple, which we featured in the chapter introduction, donated $50 million to Stanford
University hospitals and another $50 million to the African aid organization (Product) RED, a
charity fighting against AIDS, tuberculosis, and malaria. Do these projects contradict the goal of
maximization of shareholder wealth? Why or why not?

Expert Solution

ekkarill92 answered 1 year ago

Firms often make decisions that involve spending money in the present and expecting to earn profits...

Firms often make decisions that involve spending money in the present and expecting to earn profits in the future. Firms often need raise the financial capital to meet various needs that include projects, equipment, staffing, expansion, and more. Discuss the top three sources for companies to borrow money from, for a new building purchase, what are the typical lending interest rates, required collateral, and repayment terms at each of the three sources.

Why do competing firms often locate their stores in close proximity to each other? For example,...

Why do competing firms often locate their stores in close proximity to each other? For example, gas stations always built right next to other gas stations. Fast food chains, grocery stores, coffee shops, and restaurants always seem to exist in groups instead of being spread evenly throughout a community. CAN YOU PLEASE MAKE THE ANSWER AT LEAST 100 WORDS.

When oligopoly firms engage in cut-throat competition it tends to result in ________. more profits fewer...

When oligopoly firms engage in cut-throat competition it tends to result in ________. more profits fewer profits zero economic profits

We often hear politicians discussing taxing firms that earn “excessive” profits. Other times, such as in...

We often hear politicians discussing taxing firms that earn “excessive” profits. Other times, such as in the wake of the 2008 financial crisis, we observe firms requesting “bailouts” from the government to compensate for losses. In the context of this section’s material on the role of economic profits and loss, discuss the implications of policyaimed at reducing profits or mitigating losses.

how do brokerage firms make money through Trading profits on stocks and Trading profits on bonds

Discusson topic: Flashbulb memories can be very vivid and often involve shocking historical events. An example...

Discusson topic: Flashbulb memories can be very vivid and often involve shocking historical events. An example would be the terrorist attacks in New York on 9/11. Choose a historic flashbulb memory that has significance to you and describe it in detail. What senses are involved in this memory? Did you experience strong emotions during the original event? Why would you characterize this memory as a flashbulb memory? You should offer at least one citation to support your work.

At what point do all four market structures maximize profits? In the long-run do firms in...

At what point do all four market structures maximize profits? In the long-run do firms in a perfectly competitive market structure have an incentive to increase output? Please provide real-life examples in your response. Who determines the price for perfectly competitive market structures? Can you provide a real-life example in which monopolistic market structures should be scrutinized by Anti-Trust Authorities? What about Amazon?

Do consumers matter a market? Or is it all about firm profits? While firms "profit" off...

Do consumers matter a market? Or is it all about firm profits? While firms "profit" off consumers do consumers ever "profit" off firms? What does it mean for a market to be "efficient"? If a market is "efficient," does this mean consumers are the best off they could possibly be? Are firms the best off they could possibly be? In your own opinion, what should it mean for a market to be "fair"? (note: this is a normative question!)

Should firms care about their Scope 3 emissions? Do they care? It is often argued that...

Should firms care about their Scope 3 emissions? Do they care? It is often argued that ESG portfolios perform better during crisis periods. Provide one counter example. In which way is Bitcoin (mining) contributing to climate change?

Why do firms do not include interest expense in the calculation of RNOA? Give an example.

Question