If Taxes or Assessments on Leased Premises Are Increased Because

question 28

Multiple Choice

If taxes or assessments on leased premises are increased because of improvements made by the tenant the: ___________.

• A) landlord is only liable for such increases if the improvements stay with the property.
• B) landlord is liable for such increases whether or not the improvements stay with the property.
• C) landlord is liable for such increases only to the extent that the improvements actually increase the fair market value of the property.
• D) tenant is always liable for such increases.

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Definitions:

Deadweight Loss

A dip in economic optimization that happens when the equilibrium of a good or service in the free market is not realized.

Price-Discriminates

The practice of selling the same product to different buyers at different prices based on their willingness to pay, not differences in production costs.

Cable Subscriptions

A service model where consumers pay a regular fee to access a bundled set of television channels and programs.

Profit-Maximizing Output

The level of production at which a company can achieve the highest level of profit based on its costs and the market price.