The Business Activities of Firm a Confer Positive Externalities on Firm

question 378

Multiple Choice

The business activities of Firm A confer positive externalities on Firm B, and the business activities of Firm B confer positive externalities on Firm A. If the two firms merged, then

• A)their respective markets would move closer to the social optimum.
• B)their respective markets would move further away from the social optimum.
• C)total surplus in their respective markets would decrease.
• D)the merger would serve as an example of a misguided public policy toward externalities.

Analyzing the effects of price controls on supply and demand.

Calculating price elasticity of demand and its influence on revenue.

Deriving linear supply and demand equations.

Assessing the effects of government policies on market equilibrium.

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Definitions:

Environment

Surroundings or conditions in which an organism lives or operates, including both natural and man-made influences.

Daly And Wilson

Researchers known for their work in evolutionary psychology, focusing particularly on violence and familial relations.

Abuse

The improper usage or treatment of an entity, often to unfairly or improperly gain benefit.

Infanticide

The act of killing an infant, often defined legally as the killing of a baby within the first year of life.