A contract containing an adjustment provision which allows the supplier to recover a fraction of his additional costs when input prices cross a certain level, is considered efficient because:
a. it reallocates the supplier's risk while checking his activities.
b. it reallocates risks completely to the buyers.
c. it allows the supplier to take up risks.
d. it allows the buyers to partially reallocate their risks.
A
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Describe the history and consequent deepening as the European Union developed
Which treaties created which level of economic integration? Do countries have the ability to participate in some levels of integration and not others? Give specific examples.
A(n) _____ perceives the demand for its own output as horizontal at the market price, so it can produce as much or as little as it wants without affecting that price
a. oligopolist b. monopsonist c. monopolist d. perfect competitor
Which of the following statements is correct?
a. The more similar Firm A's product is to Firm B's product, the more likely Firm A is to advertise. b. Monopolistically competitive firms advertise in order to increase the elasticity of the demand curve they face. c. According to the signaling theory, the more product information an advertisement contains, the more effective it is. d. Brand names may help consumers if they provide information about the quality of a product when acquiring such information is difficult.
A surprising outcome of the Rock-Paper-Scissors game is that
A) it is a clear example of a first mover advantage. B) there is no pure-strategy Nash equilibrium. C) it is best not to play the game. D) it is a good way to determine who goes first in a sequential move game.