During a Volunteer Program to Rebuild a Local Play Ground,a

question 65

Multiple Choice

During a volunteer program to rebuild a local play ground,a group of volunteers from a top corporation participate in the program.Among the 20 people that show up to help rebuild the play ground,there are two individuals that just talk to each other and do not do any work as the rest of the people.At the end of the day,the entire group takes credit for the renovated project.How do you best describe this situation with the volunteer program to rebuild a local play ground?

• A)The incentive to help others is high.
• B)The free-ride of the two workers on the hard work of the others in the group who did work.
• C)The two individuals impose an external cost on other members of the group.
• D)none of the above

Understand the role of market entry and exit barriers in competitive price-searcher markets.

Evaluate the long-term equilibrium conditions in competitive price-taker and price-searcher markets.

Recognize the significance of contestable markets and the effects of potential competition.

Comprehend the importance of well-defined property rights and their impact on resource allocation.

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Definitions:

Contract Curve

In economics, a line on an Edgeworth box diagram representing the set of optimal allocations between two parties.

Egalitarian View

A perspective advocating for equal rights, benefits, and opportunities for all members of society.

Equity

Equity refers to ownership interest in a company, often represented by stocks, providing a claim on the company's assets and earnings.

Production Possibilities Frontier

A curve depicting all the possible combinations of two goods that can be produced within a given set of resources and technology level.