You own a car dealership and pay all of your sales people a flat salary. As a result, they don't work very hard to generate sales. This is an example of
A. an externality.
B. adverse selection.
C. logrolling.
D. moral hazard.
Answer: D
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One of the key economic questions is "where should products be produced?"
Indicate whether the statement is true or false
What is voluntary exchange?
What will be an ideal response?
A company finds that at its present level of production, MR = MC at $14, MC = AVC at $15, and MC = ATC at $20. Your advice to the firm regarding its short-run operations is
A) to continue production, as it is earning an economic profit of $1 per unit. B) to continue production, as it is earning an economic profit of $6 per unit. C) to shut down. D) to continue production at a loss.
Apple continues to be innovative to ensure that their demand curve stays or becomes
a. More inelastic b. More elastic c. Unitary elastic d. None of the above