Which of the Following Is an Example of an Indirect

question 31

Multiple Choice

Which of the following is an example of an indirect interlock?

• A) Smith serves on the board of Company A, and Jones serves on the board of competing Company B. However, Smith and Jones both serve on the board of Company C.
• B) Smith serves on the board of Company A, Jones serves on the board of Company B, and Miller serves on the board of Company C. None of them serve on any other board.
• C) Smith, Jones, and Miller all serve on the board of Company A. None of them serve on any other board.
• D) Smith, Jones, and Miller all started Company A. None of them now serve on the board.

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Definitions:

MC

In economics, MC typically refers to Marginal Cost, which is the cost of producing one more unit of a good.

ATC

The total cost per unit of production, calculated by dividing the overall production cost by the number of units produced.

Production Function

A production function describes the relationship between inputs used in production and the output generated from those inputs.

Law Of Diminishing Marginal Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.