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dem82 [27]
3 years ago
12

If a firm's goal is to maximize its earnings per share, this is the best way to maximize the price of the common stock and thus

shareholders' wealth.
a. True
b. False
Business
1 answer:
ozzi3 years ago
6 0

Answer:

False is the answer

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When the price of wood (which is an input in the production of furniture) falls, the consumer surplus associated with the consum
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The consumer surplus associated with the consumption of furniture increases. Wood is an input in the production of furniture therefore it constitutes the cost of production, the decrease in the price of wood would therefore mean a decrease in the production cost. A decrease in the cost of production in turn causes a decrease in the buying price of furniture and therefore, consumer surplus increases. 
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The solution is shown in the file attached below

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