View Your World, a High- End Window Manufacturer, Directly Pays

question 24

Multiple Choice

View Your World, a high- end window manufacturer, directly pays all of the transaction costs. The managers of View Your World are considering the profit- maximizing location for their plant. If locating the plant closer to its customers saves $10,000 in transportation costs of its windows to its customers, but causes an additional $7,500 in input transportation costs, View Your World______ locate its plant closer to its customers as the marginal benefit is______ than the marginal cost.

• A)should not; more
• B)should; greater
• C)should not; less
• D)should; less

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Definitions:

Landlord's Consent

Landlord's consent is the approval a landlord must give for certain actions by the tenant, such as alterations to the property or subletting.

Majority Rule

A decision-making process in which the preferences or votes of more than half of the members of a group determine the outcome.

Minority Rule

A governance structure or situation where a smaller segment of the population holds disproportionate power or authority over the majority.

Illegal Possession

Holding or controlling property or substances in violation of the law.