Essay. Discuss and write answer in a brief and concise manner.

Explain the importance of economic theories to managers.

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B. Describe the effects of each of the following managerial decisions on the value of the firm:

a. The firm is required to install new technology to reduce plastic pollution.

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b.A new advertising campaign which increases the firm's sales substantially.

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c.The central bank takes actions that lower interest rates substantially.

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d.A surge in consumer spending which resulted to increase inflation rate.

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