The Partnership as an Organization Structure Is Flawed Because

question 43

Multiple Choice

The partnership as an organization structure is flawed because:

• A)no partner can capture the whole output his effort creates.
• B)people tend not to be honest.
• C)courts are inefficient.
• D)private incentives bring out the worst in people.

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Definitions:

Marginal Benefit

The supplementary enjoyment or value derived by a person upon consuming an extra unit of a particular good or service.

Marginal Cost

The cost of producing one additional unit of a good or service.

Marginal Benefit

Marginal benefit is the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Sushi Bar

A restaurant specializing in sushi, offering a variety of raw fish and seafood dishes, often served on a conveyer belt or prepared to order.