The alternative combinations of two goods that a consumer can purchase with a specific money income is shown by:

Comment on the following statement: "Taxes on externality-producing activities are generally used to eliminate externalities."

What will be an ideal response?

Takeover bids (and the potential for such bids)

a. increase the incentive of corporate managers to perform efficiently. b. increase the likelihood that managers will be able to gain at the expense of stockholders. c. are more likely to occur when a company is producing efficiently and operating profitably. d. serve no useful economic purpose.