A contingent contract can create production inefficiency; however, many principals accept this because
A) inefficiency is inevitable.
B) monitoring is costless.
C) risk is reduced.
D) profit will increase as a result.
C
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Based on the above figure of the costs at Barney's Bagel Bakery, at which of the following levels of output does the marginal product of labor equal the average product of labor?
A) at 500 bagels B) at 2000 bagels C) at 3000 bagels D) None of the above because the marginal and average products of labor can never be equal.
Price discrimination is:
A. the practice of charging customers different prices for the same good. B. the practice of charging customers the same price for a variety of similar goods. C. choosing which prices to charge for certain items. D. the process of customers choosing items based on price.
Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are
A. Unrelated in the sawmill operator's decision. B. Substitutes in production. C. Complements in production; by-products. D. None of the choices are correct.
Label the graph below with respect to inflation, disinflation, and deflation.
