ANSWERS TO TEST BANK QUESTIONS
Chapter 1: MANAGERS, PROFITS, AND MARKETS
1-1
1-2
1-3
1-4
1-5
1-6
1-7
1-8
1-9
1-10
a
c
a
d
c
d
a
e
a
d
1-11
1-12
1-13
1-14
1-15
1-16
1-17
1-18
1-19
1-20
1-1F
a.
b.
c.
d.
1-2F
a.
d
d
e
d
d
e
d
c
a
c
1-21
1-22
1-23
1-24
1-25
1-26
1-27
1-28
1-29
e
e
a
d
d
e
d
d
e
1-30
b
I-31
I-32
I-33
I-34
I-35
I-36
I-37
I-38
I-39
I-40
c
a
d
e
e
d
e
c
d
d
$100,000; $75,000; $175,000
$275,000
$350,000
$237,500
23,000,000 23,000,000 23,000,000 23,000,000



(1.12)1
(1.12) 2
(1.12)3
(1.12) 4
 20,535,714  18,335, 459  16,370,946  14,616,916
Value 
b.
 $69,859,035
higher; decrease
1-3F
a.
b.
$629,036; $629,036
$575,022; $575,022
1-4F
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
industrial organization
business practices or tactics
behavior; profit
total revenue; accounting profit
economic
smaller
differentiated
larger
owner-supplied
shareholders; managers
hazard
control
outsiders; value (or price)
average cost
share
is not