Fact Pattern 24-1Lisa Writes a Check on Her Account at Metro

question 32

Multiple Choice

Fact Pattern 24-1Lisa writes a check on her account at Metro Bank to Niklas to pay a debt. Niklas negotiates the check by indorsement to O'Leary, who presents it for payment to Prime Bank.
-Refer to Fact Pattern 24-1.If Prime Bank dishonors the check,O'Leary can obtain payment from Niklas 

• A) ​if O'Leary timely notifies Niklas. 
• B) ​only if Lisa refuses to pay the check. 
• C) ​only to the extent that Lisa overpaid her debt to Niklas. 
• D) ​under no circumstances.

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Definitions:

Marginal Benefit

The additional satisfaction or utility gained by consuming or producing one more unit of a good or service.

Marginal Cost

The added expenditure resulting from the production of an extra unit of a good or service.

Socially Optimal

A condition or outcome that maximizes societal welfare, taking into account all costs and benefits to society as a whole.

Positive Externalities

Benefits that occur from a transaction or activity to third parties who are not directly involved in the transaction or activity.