A Technological Improvement Lowers the Cost of Producing Corn

question 75

Multiple Choice

A technological improvement lowers the cost of producing corn.As a result,the price of a pound of corn ________ and the quantity of corn ________.

• A) rises; increases
• B) rises; decreases
• C) falls; increases
• D) falls; decreases
• E) falls; does not change

Recognize the implications of the static theory of capital structure for firm valuation and optimal capital structure.

Identify and define the key components and consequences of financial restructuring, liquidation, and reorganization for distressed firms.

Distinguish between business risk and financial risk and their sources.

Understand the effects of financial leverage on WACC and the firm's cost of equity.

---

Definitions:

Service-Quality Dimension

Various aspects through which the quality of service can be assessed, including tangibility, reliability, responsiveness, assurance, and empathy.

Empathy

The ability to understand and share the feelings of another, essential for effective communication and relationship-building.

Product Quality

The standard of a product as measured against similar products; it encompasses attributes such as durability, reliability, and performance.

Hybrid Vehicles

Vehicles that use a combination of at least one electric motor alongside an internal combustion engine to propel themselves, offering improved fuel efficiency compared to conventional vehicles.