If a purchase contract allows a buyer to accept less than a specified maximum take each month, buying a _____ would allow the seller to resell the excess at a _____ price.
a. put option; profitable
b. put option; predictable
c. call option; predictable
d. call option; profitable
Question 2
Internalizing the externalities means that
A) all costs have been accounted for.
B) all costs and benefits have been accounted for.
C) all benefits have been accounted for.
D) free-riders have paid a tax to the government.
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