Which of the Following Statements Is False

question 9

Multiple Choice

Which of the following statements is false?

• A) If a firm only needs to use the asset for a short time, it is probably less costly to lease it than to buy and resell the asset.
• B) While owners of assets are likely to resell them only if the assets are "lemons," a short-term lease can commit the user of an asset to return it regardless of its quality. In this way leases can help mitigate the adverse selection problem in the used goods market.
• C) Car dealerships are in a better position to sell a used car at the end of a lease than a consumer is.
• D) If the asset's tax depreciation deductions are faster than its lease payments, there are tax gains from a true tax lease if the lessor is in a lower tax bracket than the lessee.

Comprehend the implications of regulatory measures on employment discrimination.

Understand the implications of operational efficiency and business decisions on gender disparities in the workforce.

Understand the impacts of discrimination against women in the workforce on firm costs and competitiveness.

Grasp the concept of the average total cost (ATC) curve and its U-shaped nature due to average fixed costs (AFC) and marginal costs (MC).

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Definitions:

Marginal Utility

The extra satisfaction or benefit gained from consuming an additional unit of a product or service.

Total Utility

The total satisfaction or benefit received by consuming a good or service.

Utility Schedule

A table or chart displaying various combinations of goods or services and the utility or satisfaction obtained from each combination.

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the marginal utility that person derives from consuming each additional unit of that product.