According to Keith Davis,in Addition to Considering Potential Profitability,a Business

question 38

True/False

According to Keith Davis,in addition to considering potential profitability,a business must weigh the long-range social costs of its activities as well.A business should act only if the overall benefit to society is positive.

Understand the effects of tariffs and import quotas on domestic markets, including impacts on consumer surplus, producer surplus, and total surplus.

Analyze the impact of trade (both free and restricted) on domestic producers and consumers.

Calculate the domestic quantity demanded and supplied in the context of international trade.

Evaluate the effect of government policies (tariffs, quotas, and free trade agreements) on the domestic economy, including deadweight loss and government revenue.

---

Definitions:

Document of Title

A legal document evidencing a person's legal right to control the disposal of goods, such as a bill of lading or warehouse receipt.

Bailees

Individuals or entities entrusted with temporary possession of someone else's property.

Revokes Acceptance

The legal act of canceling or withdrawing approval of a previously accepted offer or contract, often due to the discovery of a significant flaw or misrepresentation.

Consumers Choice

The decision-making process by which customers select from available products or services based on preferences and factors like price and quality.