Evidence Suggests That the Best Way to Maximize the Long-Run

question 45

Multiple Choice

Evidence suggests that the best way to maximize the long-run return to shareholders is to focus on:

• A) increasing prices.
• B) research and development goals.
• C) satisfying customer needs and making sure that employees are fairly treated.
• D) compensating managers well.
• E) maximizing employee overtime.

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Definitions:

Quantity Demanded

The aggregate sum of a product or service that buyers are ready and capable of buying at a specific price level.

Demand

The inclination to buy products and services supported by the capability and readiness to spend a specific amount of money.

Increase

To become or make greater in size, amount, intensity, or degree.

Demand Curve

A diagram illustrating the connection between the price of a commodity and the amount of it consumers want over a set period.