When Property Rights Are Assigned and Transactions Costs Are Low

question 95

Multiple Choice

When property rights are assigned and transactions costs are low,

• A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient.
• B) externalities will result in market failure.
• C) the marginal social benefit curve shifts leftward and the marginal social cost curve does not shift.
• D) the marginal social cost curve shifts rightward and the marginal social benefit curve does not shift.
• E) the marginal social cost curve shifts rightward and the marginal social benefit curve also shifts rightward.

Understand how to effectively position and promote products to specific target markets.

Understand the principles of how partnerships are formed, including the significance of having a partnership agreement.

Recognize the roles and responsibilities of partners in a partnership, and how authority and liability are shared.

Analyze the implications of partner actions on the liability and financial obligations of the partnership.