The law of increasing opportunity costs indicates that: a. resources are perfectly mobile except for transportation costs.
b. the sum of all costs cannot rise above the market price of a product.
c. to produce more of one good, society must sacrifice larger and larger amounts of alternative goods.
d. if the prices of all the resources involved in the production of goods increase, the cost of producing those goods will increase at the same rate.

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.