If Goods in Transit Are Shipped FOB Shipping Point by a Carrier

question 114

Multiple Choice

If goods in transit are shipped FOB shipping point by a carrier named by the buyer,

• A) the seller has legal title to the goods until they are delivered.
• B) the buyer has legal title to the goods when a public carrier accepts the goods from the seller.
• C) the transportation company has legal title to the goods while the goods are in transit.
• D) no one has legal title to the goods until they are delivered.

---

Definitions:

Marginal Cost

The cost added by producing one extra unit of a product or service.

Output Effect

The change in total revenue resulting from selling more units at a lower price, in the context of price elasticity of demand.

Socially Efficient

An allocation of resources is considered socially efficient if it cannot be reallocated in a way that improves the wellbeing of one individual without worsening the situation of another.

Collude

To collaborate secretly and illegally with others with the aim of deceiving or obtaining an unfair benefit.