Which of the following statements is NOT true of a corporation?
A) It is an entity separate from the individuals who own it.
B) It can enter into contracts.
C) It can incur debt that is an obligation of the corporation but not of its individual owners.
D) It has the right to sue and be sued.
E) It is legally obliged to distribute all profits to shareholders.
Ans: C) It can incur debt that is an obligation of the corporation but not of its individual owners.
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A foreign firm that is selling below cost and is accused of dumping often:
a. lowers its price further to increase the tariff imposed. b. moves its production to the importing nation to avoid the tariff completely. c. raises its export prices to reap the rents and avoid the antidumping tariff completely. d. calls for a ruling by the WTO.
Which statement is true?
A. A pure private good can never be jointly consumed. B. The price theory we studied always considers efficient output to be the place where marginal cost equals marginal benefit, even if the good is a pure public good. C. For efficiency to be achieved in the production of a public good everyone should be taxed an amount equal to the value they place on the last unit of the good provided times the quantity of public good provided. D. All of these are true.