Incentive contracts typically result in higher risk-related compensation to agents on average,
a. even so, they are always worth it
b. this does not affect their desirability
c. as a consequence, they may cost more than the problem they solve
d. therefore, they are never worth it
c
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In the above figure, a black market emerges with a
A) price ceiling of $4. B) price floor of $2. C) price floor of $4. D) a rationed quantity 30.
The monopolist always maximizes its profits by producing the amount of output that sets the marginal revenue equal to zero
Indicate whether the statement is true or false
Within the range of prices around the midpoint on a straight-line demand curve, demand is
A) elastic. B) inelastic. C) unit-elastic. D) zero.
Which of the following is false?
A. Tariffs on imports generate revenue for the government. B. Tariffs on imports generate government revenue as long as the domestic price is larger than the world price plus the tariff. C. Tariffs on imports do not generate government revenue if the domestic price is larger than the world price plus the tariff. D. An import quota does not generate government revenue.