The parent company would want to reward managers based on division revenues because
a. It decreases the incentives for the managers to make good decisions for their division
b. It increases the incentives for the managers to make good decisions for their divisions
c. It does not change the motivations for the managers
d. None of the above
b
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Which of the following is NOT true when there are large economies of scale such that one firm can produce at a lower average cost than can be achieved by multiple firms?
A) This situation produces a natural monopoly. B) Proportional increases in output yield proportionally small increases in total cost. C) The long-run average cost curve of the firm will increase at a low level of output. D) There will only be one firm in this industry.
The ________ of the demand curve corresponds to the idea that the marginal utility for the first few goods is ________.
A. bottom; higher B. top; higher C. bottom; lower D. top; lower
Refer to Table 4.1. A change in the price of hamburgers caused the change in quantity demanded shown in the table. The price elasticity of demand for hamburgers (calculated using the initial value formula) is:
A. 0.25. B. 0.50. C. 1. D. 1.75.
An example of an employer tax credit is the EITC
Indicate whether the statement is true or false