- 8.1: What are the advantages of a sole proprietorship?
- 8.2: What are the disadvantages?
- 8.3: What are three different kinds of partnerships, and how do they dif...
- 8.4: What are the advantages and disadvantages of a partnership?
- 8.5: What are the advantages and disadvantages of orporation?
- 8.6: In what three ways can companies consolidate?
- 8.7: How is a franchise an almost independent business?
- 8.8: What is the difference between a cooperative and a nonprofit organi...
- 8.9: What might be the outcome of raising the fees and requiring more pa...
- 8.10: Do you think the number of multinationals will continue to increase...
- 8.11: As you have read, sometimes merged companies are not more efficient...
- 8.12: Use the following graph showing the number of mergers in the years ...
- 8.13: Use the following graph showing the number of mergers in the years ...
- 8.14: Use the following graph showing the number of mergers in the years ...
Solutions for Chapter 8: Types of Business Organizations
Full solutions for Economics: Concepts and Choices: Student Edition 2008 | 1st Edition
Arrow’s impossibility theorem
a mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferences
average total cost
total cost divided by the quantity of output
average variable cost
variable cost divided by the quantity of output
the subfield of economics that integrates the insights of psychology
constant returns to scale
the property whereby long-run average total cost stays the same as the quantity of output changes
the property of a good whereby a person can be prevented from using it
something that induces a person to act
spending on capital equipment, inventories, and structures, including household purchases of new housing
the increase in total cost that arises from an extra unit of production
median voter theorem
a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter
the production of goods and services valued at current prices
a good for which, other things being equal, an increase in income leads to an increase in demand
whatever must be given up to obtain some item
a curve that shows the short-run trade-off between inflation and unemployment
an action taken by an uninformed party to induce an informed party to reveal information
a situation in which quantity demanded is greater than quantity supplied
government policy aimed at protecting people against the risk of adverse events
a cost that has already been committed and cannot be recovered
a situation in which quantity supplied is greater than quantity demanded
costs that vary with the quantity of output produced