FreeWorld Is a Non-Profit Campaigning Organization That Has Discovered That

question 2

Multiple Choice

FreeWorld is a non-profit campaigning organization that has discovered that Shine4Ever Corp. is dealing in conflict diamonds-diamonds from the coasts of Liberia that originate from areas controlled by forces that fund anti-government operations. After several demonstrations, boycotts, and advertising campaigns by FreeWorld, Shine4Ever agrees to an external certification process to ensure that the diamonds are "clean". This social pressure is a result of ________.

• A) private politics
• B) business intelligence
• C) market demand
• D) competitive analysis

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Definitions:

Marginal Cost

The added total cost resulting from the manufacture of one more unit.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often represented as the area above the supply curve and below the equilibrium price.

Output Tax

A tax imposed based on the quantity of goods or services produced.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit varies as production increases.