Externalities Can Be Internalized Through Voluntary Agreements as Long as

question 165

Multiple Choice

Externalities can be internalized through voluntary agreements as long as

• A)transaction costs are low relative to expected benefits.
• B)transaction costs are high relative to expected benefits.
• C)the agreement is a short-run agreement.
• D)the agreement is a long-run agreement.

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Definitions:

Revenues

The cumulative revenue produced from selling goods or services that are fundamental to a company's main activities.

Cash Dividend

Profits distributed by a company to its shareholders, usually as a form of payment.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific period.

Dividends Paid

The total amount of dividend payments made to shareholders during a specific period, often reported quarterly or annually.