If the Construction of a New Hospital Would Create $6

question 94

Multiple Choice

If the construction of a new hospital would create $6 million worth of benefits for citizens and would cost $8 million to construct, then using the criterion of economic efficiency, the hospital

• A) should be built.
• B) should not be built.
• C) results in a substantial improvement to the welfare of society.
• D) should be built if it passes by a majority vote.

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Definitions:

Conducting Business

The act of engaging in activities, operations, or transactions that relate to the buying or selling of goods or services.

Misconduct

Improper or unlawful behavior by a person in a professional or official capacity.

Partnership Business

A type of business organization in which two or more individuals share ownership, profits, and liabilities.

Binds the Firm

Implies an agreement or action that legally obligates a company to a particular course of action or contractual obligation.