Refer to the Diagram

question 171

Multiple Choice

Refer to the diagram. Which one of the following might shift the marginal benefit curve from MB₁ to MB₂?

• A)major new studies strongly linking cancer to pollution
• B)improved technology for reducing pollution
• C)a change in consumer tastes from manufactured goods to services
• D)a decrease in the price of recycled goods

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Definitions:

Capital Structure

The combination of a firm's long-term loans, particular short-term borrowings, ordinary shares, and preferred shares, which represents how a company funds its general activities and expansion.

Dividends

Distributions of earnings given to shareholders by a corporation, generally from its profits.

Unlevered Cost

The cost of financing a project or investment without considering the effects of leverage or borrowing.

Capital

Financial assets or the financial value of assets, such as cash, used by a business to fund its operations and investments.