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Author Question: When is disclosure economically desirable?[br][br][b][color=red]Question 2[/color][/b][br][br]The ... (Read 41 times)

sabina

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on: Jun 30, 2018
When is disclosure economically desirable?

Question 2

The scope of a firm refers to its
 A) vertical boundaries.
  B) economies of scale.
  C) horizontal boundaries.
  D) all of these choices.


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djofnc

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A contract can contain information that is valuable to both the signing parties and outsiders. Sometimes the law requires that certain facts be disclosed in it. Disclosure is economically desirable where a failure to disclose would reduce the economic value the agreement can produce. As an example, if you put a house on the market you must generally inform potential buyers that it has structural defects or is infested by termites. A buyer with this information is in a better position to determine its suitability than one without it.

Answer to Question 2

C


sabina

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Reply 2 on: Jun 30, 2018
Gracias!

kilada

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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