1. At a price of $30, a store can sell 12 T-shirts a day. At a price of $24 the store can sell 18 T-shirts a day. What is the best strategy for the Company to increase total revenue. Explain briefly. (10 points)

2. State two reasons for market failure and related solutions against them. (10 points)

3. When a firm's average total cost curve continually declines, state the type of the firm (5 points).

4. Suppose a profit-maximizing firm in a competitive market produces boxes. When the market price for boxes falls below the minimum of average variable cost, explain the best strategy for the firm in the short run. (10 points)

5. What is the meaning of Making rational decisions at the margin. (5 points)

6. State 5 factors that cause a shift in demand curve. (10 points)

7. In the product life cycle, state marketing viewpoint steps. (5 points)

8. Calculate the residual income for the XYZ Company if operating income is $900,000, operating assets are $20,000,000 and minimum rate of return is %4? Evaluate the result for the Company strategy. (15 points

9. The Company is expecting to receive $500,000 at some time in the future. Which of the following would increase the present value of this future payment? (15 points)

A) Interest rates rise and you get the payment sooner.

B) Interest rates rise and you have to wait longer for the payment.

C) Interest rates fall and you get the payment sooner.

D)Interest rates fall and you have to wait longer to get the payment.

10. If the operating income is $400,000, the assets of the year 2019 are $19,000,000 and the assets of the year 2020 are $21,000,000, then return on investment ratio for the year 2020 is (15 points)