Cost-Benefit Analysis for a Private Good Is Facilitated by Which

question 30

Multiple Choice

Cost-benefit analysis for a private good is facilitated by which of the following facts?
(i) buyers of a private good reveal the value they place on a good by the prices they are willing to pay
(ii) a private good cannot be rival
(iii) sellers of a private good are likely to purchase inputs in regulated markets
(iv) sellers of private goods reveal their costs by the prices they are willing to accept

• A)(i), (ii), (iii) and (iv)
• B)(i) and (iv) only
• C)(ii) and (iii) only
• D)(i), (ii) and (iv) only

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Definitions:

Consideration

In contract law, consideration refers to something of value exchanged between parties as part of an agreement.

Good Faith Purchasers

Individuals who buy property without knowledge of any existing claims or issues, often protected by law.

Infants

Legally refers to individuals who are under the age of majority, typically considered to be 18 years in many jurisdictions, and who are thus limited in their ability to enter into contracts.

Minors

Individuals under the age of legal adulthood, which varies by country, typically recognized as under 18 or 21 years old.