Suppose there is no uncertainty about sales. Firms can avoid hiring lazy workers by
A) offering contingent contracts.
B) fixed wage contracts.
C) engaging in cheap talk.
D) All of the above.
A
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Why do economies of scale and monopoly power exist with network goods?
A. Many small firms must develop to serve all of the consumers willing to pay for access to the network good, so their costs are driven down. B. Network goods require a group of sellers working together and this cooperation reduces the firms' cost per unit. C. Just as the value of a network good decreases to each user as the total number of users increases, so does the long run average cost decrease as output increases. D. As the number of people connected to a network increases, the greater the benefits each person gets and the smaller the cost per unit to supply.
The aggregate expenditure model focuses on the ________ relationship between real spending and ________.
a. short-run; real GDP b. short-run; inflation c. long-run; real GDP d. long-run; inflation
Assuming convex producer choice sets, the (marginal) technical rate of substitution is equal (in absolute value) to the ratio of input prices at any profit maximizing production plan.
Answer the following statement true (T) or false (F)
One major difference between the aggregate supply curve and an individual supply curve isthe aggregate supply curve represents:
A. production in the economy as a whole rather than just one good or service. B. production in an entire market rather than just one firm. C. goods and services sold rather than the total actually produced by each firm. D. goods and services produced and actually sold by each firm.