Externalities involve the imposition of costs or benefits on parties outside an activity or transaction.
Answer the following statement true (T) or false (F)
True
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The ultimate authority of a corporation Belongs to the
A. CEO.
B. Board of directors.
C. CFO.
D. None of these choices are correct.
If a firm in a perfectly competitive market faces the cost curves in the graph shown and observes a market price of $13, the firm:
A. can make positive profits by producing more than 35 units.
B. can make positive profits by producing where MC = MR.
C. cannot make positive profits and should shut down in the short run.
D. should continue to operate in the short run, but plan to exit in the long run.
The distinguishing characteristic of a public good is
A. noncompetitive production. B. durability. C. nonrival consumption. D. exclusivity.
If Bob can complete mathematics homework assignments at a lower opportunity cost than Jane can accomplish, then Bob has ________ in completing mathematics homework assignments.
A. an absolute advantage B. a relative disadvantage C. a complete advantage D. a comparative advantage