When a corporation decides to include its own corporate stock as part of the compensation for its employees, it is trying to solve the
a. adverse selection problem.
b. principal-agent problem.
c. lemons problem.
d. signaling problem.
b
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IBM went to the trouble of adding five separate microchips to its F-series printers to slow them down and sell them as E-series printers for a lower price
How could any firm justify adding extra costs to production for a good that will carry a lower price tag?
If a grocery store offers a five percent discount to senior citizens, this is an example of ________ and is ________.
A) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly B) conditional sales; always illegal per se C) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly D) price discrimination; always illegal per se
Price elasticity of demand is typically negative because
a. as price decreases, quantity demanded decreases b. as price decreases, quantity demanded increases c. as price decreases, demand decreases d. as price decreases, demand increases e. consumers rarely respond to a change in price
Combining various goods and services into a convenient grouping is called
a. conglomeration. b. blending. c. congregation. d. agglomeration. e. aggregation.