In the market for DVDs, 500,000 DVDs a month are available. The value people place on the 500,000th DVD a month is less than the marginal social cost of producing it. Resource use ________
A) is efficient
B) is inefficient
C) would be more efficient if people firms would produce more DVDs
D) would be more efficient if people would buy more DVDs
B
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The CEO of Dynadyne corporation has been more concerned with enhancing his lifestyle by having the company pay for expensive corporate retreats than he has been with increasing the value of the company's stock
In this situation, the CEO is ________ and the stockholders are ________. A) an agent; also agents B) the agent; the principals C) a principal; also principals D) the principal; the agents
An advantage of the partnership form of business organization is
A) its limited liability. B) its limited access to capital, thus reducing the possible size of debt. C) the ability of its owners to specialize. D) that it is difficult to start up, because a lot of thought has to go into the establishment of the firm.