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

question 78

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 & development goals.
• C) satisfying customer needs and making sure employees are treated fairly.
• D) compensating managers well.
• E) maximizing employee overtime.

---

Definitions:

Input

Resources used in the production process to produce goods or services, such as labor, raw materials, and capital.

Output

The amount of goods or services produced by a company, industry, or economy.

Function

A relation between a set of inputs and a set of permissible outputs, typically defined by a rule that every input is related to exactly one output.

Production Function

A mathematical model that describes the relationship between inputs used in production and the output generated from those inputs.