What Does It Mean to Say That a Firm Has

question 10

Multiple Choice

What does it mean to say that a firm has been made liable?

• A) The firm is legally responsible to compensate other parties for damage.
• B) The firm has begun to treat any external costs as private costs.
• C) The firm has received the property rights to a disputed resource.
• D) The firm is required to pay a Pigou tax to the government.

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Definitions:

Marginal Utility

The additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service.

Newspaper

A publication, generally made of paper and ink, that is distributed on a regular or daily basis and contains news, articles, advertisements, and other information of public interest.

Marginal Utility

The supplementary contentment or value a shopper obtains by buying an extra unit of a certain item or service.

Total Utility

The overall satisfaction or value a consumer receives from consuming a given quantity of goods or services.