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In General,the Role of the Financial Manager Is to Plan

question 20

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In general,the role of the financial manager is to plan for the acquisition and use of funds in order to maximize the value of the firm.


Definitions:

Minimum Cost

The lowest possible expenditure to produce a given quantity of goods or services.

Expansion Path

Curve passing through points of tangency between a firm’s isocost lines and its isoquants.

Long Run

A period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Marginal Cost

The extra financial outlay needed for manufacturing another unit of a product or service.

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