Refer to the scenario above. A change in the probability of breakdown to 10 percent will:
A) increase the net present value to $135.65.
B) lead to a negative net present value.
C) decrease the net present value to $16.02.
D) decrease the net present value to $10.
C
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In tacit collusion, price visibility ________ the cost of cheating and ________ the temptation to cheat.
A) decreases; increases B) increases; increases C) decreases; decreases D) increases; decreases
Sole proprietorships produce more goods and services than does any other form of business organization
a. True b. False
Interest payments on the national debt are about _____ percent of total federal expenditures a year.
A. 2 B. 5 C. 7 D. 11
The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state. From this we can definitively conclude:
A. that political corruption has occurred. B. that logrolling has occurred. C. that a principal-agent problem has occurred. D. nothing; the Road Runner Club may have donated to Senator Sly because he already supported the jogging paths.