Which of the Following Creates an Incentive to Increase the Amount

question 117

Multiple Choice

Which of the following creates an incentive to increase the amount of an activity?

• A) an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity
• B) a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity
• C) constant marginal cost and constant marginal benefit of the activity
• D) None of the above create an incentive to increase the amount of an activity.

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Definitions:

RUPA

The Revised Uniform Partnership Act, which is a set of laws designed to govern the operations of partnerships in the United States.

Buyout

The purchase of a company's shares to gain control over it, often by another company or a group of investors.

Liquidation Price

The value at which assets are sold off quickly, typically under conditions of financial distress.

Renew

To extend the period of validity or operation of something, such as a contract or license.