The Absence of Well-Defined and Enforceable Property Rights Often

question 123

Multiple Choice

The absence of well-defined and enforceable property rights often

• A) causes people to work together for the good of all.
• B) inhibits investment because it is difficult to use capital as collateral.
• C) improves society because it avoids the selfish actions of private property owners.
• D) brings about efficiency.

---

Definitions:

LRAC Curve

Stands for Long-Run Average Cost curve, which shows the lowest average cost of producing different levels of output when all inputs, including capital, are variable.

Entry

The act of beginning or entering into a particular sphere or market, often used in the context of firms entering an industry.

MC of Production

The additional cost incurred by producing one more unit of a good or service, often denoted as marginal cost.

Long-Run Industry

An economic concept where all inputs and operations are adjustable, allowing for new firms to enter or exit the market, affecting supply and price levels.