Sue offers to pay Al $50 for each painting of his that she sells in her gallery. Each painting sells for $75. The cost to Al of producing each painting is $55. Which of the following statements is TRUE about this contract?

A) This contract is efficient.
B) This contract maximizes joint profit.
C) Al will not participate in this contract.
D) This is a fixed-fee contract.


C

Economics

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If the demand for recycled plastic is specified as QD = 100 – 2.5P, the slope of demand,as conventionally graphed, is

a. –2.5 b. –0.4 c. +100 d. none of the above

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As we move down a straight-line demand curve, the price elasticity becomes

A. larger. B. smaller. C. larger and then smaller. D. smaller and then larger.

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To eliminate a recessionary gap, the expenditure schedule should be

a. shifted downward. b. shifted upward. c. made steeper. d. made flatter.

Economics

In a closed economy,

A) I = Y + C + G.
B) I = Y - C - G.
C) I = Y - C + G.
D) I = Y + C - G.

Economics