a) Managers will maximize the values of firms by making decisions that maximize………. In every single time period, so long as cost and revenue conditions in each period are.

b) When current output has the effect of increasing future costs, the level of output that maximizes the value of the firm will be……….. (smaller, larger) than the level of output that maximizes profit in single period.

c) When current output has a positive effect on future profit, the level of output that maximizes the value of the firm will be………. (small, larger) than the level of output that maximizes profit in the current period.