The Following Table Shows the Costs and Benefit of Producing

question 90

Multiple Choice

The following table shows the costs and benefit of producing a commodity.Table 13.1

-Which of the following is not a problem with a public good?

• A)An incentive to free-ride
• B)A public good is often underconsumed
• C)An absence of private property rights
• D)An inability to limit consumption to those who purchase the good
• E)A public good is usually underproduced

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Definitions:

Contract Law

A body of law regulating the formation, performance, and enforcement of contracts between parties.

Repudiates

To reject or deny the validity or authority of something, often associated with contracts or obligations.

Lost Profits

Potential revenue that a business did not earn, often due to breaches of contract, infringement, or other wrongful acts.

Inventory

The complete list of items such as merchandise, raw materials, and products that are in stock within a business's possession.