The CEO and stockholders are not necessarily the same people. This gives rise to
A) upstream and downstream contracts.
B) a principal-agent problem.
C) complete contracts.
D) a control over moral hazard.
B
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In monopolistic competition, the presence of a large number of firms making a differentiated product means that
A) each firm can set the price of its particular product. B) each firm must charge the same price. C) the price is established by collusive behavior. D) each firm must produce the same quantity. E) firms cannot compete with each other on the basis of price.
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?
In a game theory model, how is Nash equilibrium achieved?
What will be an ideal response?
One of the factors causing the shrinking gap between rich and poor countries is
a. learning by poor countries. b. increasing resource discoveries. c. increasing populations in poor countries. d. transfers of income from rich countries.