A doctor pursuing his own interests rather than the interests of his patients is an example of the principal-agent problem
Indicate whether the statement is true or false
TRUE
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Which of the following industries is most likely closest to achieving perfect price discrimination?
A) the airline industry B) the wheat industry C) the textbook industry D) the toilet paper industry E) the soft drink industry
What are economies of scale? What are diseconomies of scale?
What will be an ideal response?
If a firm is a monopsonistic hirer of labor:
a. its marginal expense for labor is greater than the market wage. b. its marginal expense for labor is equal to the market wage. c. its marginal expense for labor is less than the market wage. d. it is a price taker in the labor market.
If the demand for cream cheese produced by a dairy is perfectly elastic, then:
a. the demand curve will be vertical. b. the demand curve will be horizontal. c. the demand curve will be upward sloping. d. the demand curve will be downward sloping. e. the demand curve will initially slope upward and then slope upward.