In managerial economics, agency costs refer to
a. booking travel arrangements
b. model and actor representation
c. imperfections in dealing with those hired
d. foreign espionage
c
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A monopoly definitely incurs an economic loss if
A) it produces where its marginal revenue equals its marginal cost. B) its average total cost is greater than price. C) it cannot perfectly price discriminate. D) it price discriminates. E) The statement errs because a monopoly cannot incur an economic loss.
When the benefits of an activity are received by those who are not directly involved in it, _____
a. a negative externality exists b. the government is producing a free good c. resources are being used in their highest-valued activity d. the government has to compensate for the loss in social welfare e. a positive externality exists
Which of the following statements characterize an oligopoly market? a. Oligopoly firms are guaranteed profits due to the lack of competition
b. Firms are aware that their own economic behavior will influence the decisions of rivals. c. There are few barriers to entry. d. Firms choose price and output independently from the decisions made by competitors.
A poll tax is
a. the same as a head tax and is regressive b. the same as a head tax and is proportional c. the same as an excise tax and is progressive d. the same as a property tax and is regressive e. a tax on voting