A term of a consumer contract is considered unfair if: 

i.it would cause some imbalance in the parties’ rights and obligations arising under the contract. 

ii.it would cause a significant imbalance in the parties’ rights and obligations arising under the contract. 

iii.it is reasonably necessary to protect the legitimate interests of the party who would be advantaged by the term;  

iv.it would cause only a financial detriment to a party if it were to be applied or relied on. 

v.it would cause any form of detriment to a party if it were to be applied or relied on.  

According to Edward Freeman’s Stakeholder Theory, which of the following statements does not align with its core principles? 

A. Promoting short-term financial profits as the primary goal 

B. Ensuring that the interests of all relevant stakeholders are considered in decision-making processes 

C. Placing shareholders' interests above those of other stakeholders 

D. Disregarding the societal and environmental consequences of business operations 

E. Recognising that an important focus of business lies in fostering relationships with stakeholders 

Which of the following is an example of an externality associated with the global shipping industry?

George owns a cake shop, which he spends his days managing. If he were to shut it down, he could work as pastry chef earning $400 per day. He also pays $200 per day to rent the building. His expenses on staff and ingredients depend on how many cakes his shop makes per day and are given by the following table.

If George’s shop produces 8 cakes, his marginal cost is _____, and his average cost is _____.

Suppose that Ron and Karen have a boutique bakery where they make only cakes and biscuits. Their daily productivity is reported in the table below.

Ron’s opportunity cost of producing a kilogram of cake is kg of biscuits.

A local sandwich shop faces the following costs of production per hour depending on how many sandwiches it makes.

Suppose that the market for sandwiches is perfectly competitive. If the market price of a sandwich is $3.50, the shop will make sandwiches per hour.

Fertilizer runoff from farms can cause ocean “dead zones” near the mouths of rivers. Among other things, the existence of these zones reduces the catch of fishermen in the area. Suppose that corn farms are one source of fertilizer runoff. The lost economic surplus associated with the competitive market equilibrium for corn is 

Suppose that Cary’s Car Wash is the only car wash in its suburb and faces the following demand schedule for car washes per hour.