Acertain town in the midwest obtains all of its electricity from one company, northstar electric. although the company is a monopoly, it is owned by the citizens of the town, all of whom split the profits equally at the end of each year. the ceo of the company claims that because all of the profits will be given back to the citizens, it makes economic sense to charge a monopoly price for electricity. true or false

while setting up his new office, an attorney ordered thick, frieze carpets for the floor. however, the building inspector had him remove the expensive carpeting. the building inspector stated that according to federal regulations, the office must be wheelchair accessible as it is a public area. he further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. this scenario illustrates how a company is influenced by the component of its specific environment.

Financial information that is capable of making a difference in a decision is

Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will add to the overall costs if they pursue their own self-interests. what does this best illustrate? a. diseconomies of scale b. principal-agent problem c. experience-curveeffects d. information asymmetries