If Capital Gain Rises, a Firm Should

question 47

Multiple Choice

If capital gain rises, a firm should:

• A) consider shutting down.
• B) invest in financial assets, like stocks.
• C) invest in more capital.
• D) lower its output prices.
• E) lay off some of its workers.

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Definitions:

Smuggled

Smuggled goods are those transported illegally, avoiding regulatory oversight or tariffs.

Transit

The act or process of moving people or goods from one location to another, often involving public transportation systems.

Equilibrium Price

The rate in the market where the volume of goods supplied equals the volume of goods demanded.

Fine Imposed

A monetary penalty levied by an authority on a person or organization as punishment for a violation or wrongdoing.