Rahul met Jones at a street corner and made a verbal offer to buy his canoe for $200. Jones replied that he would "think about it." Rahul nodded affirmatively. The two then went about their separate business. Later in the day, Rahul met Brown, who also had a canoe for sale, and Rahul offered to purchase Brown's canoe for $175. Brown agreed to sell Rahul his canoe. At 4 p.m. the same afternoon, after Rahul and Brown had made their arrangement, Jones telephoned Rahul to say he would accept Rahul's offer to buy his canoe. The contract between Rahul and Brown automatically rescinded the offer which Rahul had made to Jones.

The Coase theorem states that

A) the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
B) under certain conditions, private parties can arrive at the efficient solution without government involvement.
C) if there are external costs in production, the government must intervene in the market to assure that the efficient level of output is produced.
D) public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good.

If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers.

Contemporary HR managers are increasingly regarded as second-class corporate citizens.