The problem of asymmetric information in multi-plant firms involves
A) only the problem of how to get managers to produce as much as possible.
B) only the problem of how to get managers to produce the amount the larger firm wants them to, whether it be a lot or a little.
C) both the problem of how to get managers to produce the appropriate amount and the problem of how to get them to accurately report their capacity.
D) both the problem of how to get managers to produce the appropriate amount and the problem of how to get them to not sell that output outside of the firm.
E) both the problems of vertical and horizontal integration with the rest of the firm.
C
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The average benefit of n units of an activity is the:
A. extra benefit from carrying out one additional unit of the activity. B. n divided by the total benefit of n units. C. n times the total benefit of n units. D. total benefit of n units divided by n.
Of the following four motorists, who is speculating?
A) The one driving on empty, looking for the best gasoline price in town B) The one who fills his gasoline tank believing he has found the lowest gas price around C) The one who fills his gasoline tank on news Iraq has once again invaded Kuwait D) All of the above. E) None of the above.
An increase in the expected price level will
a. increase labor supply, money wages, decrease the price level and income. b. decrease labor supply, increase money wages, decrease the price level and income. c. decrease labor supply, decrease money wages, and decrease the price level and income. d. increase labor supply, decrease money wages, decrease the price level, and increase income.
At each value of the domestic interest rate, increases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. increase; decrease; increase B. decrease; increase; decrease C. increase; increase; decrease D. increase; increase; increase