A disadvantage of team production compared to contracting out is that
a. transaction costs are often higher with team production.
b. the level of specialized knowledge required by team production is greater than with contracting out.
c. the problem of shirking must be more carefully addressed with team production.
d. team production increases the cost of production in most situations.
C
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Holding nominal money balances constant, a decrease in the price level
A) causes the real value of the money balances to increase, thereby increasing the interest rate. B) generates a reduction in the value of the money balances, leading to higher interest rates and a decrease in total planned real expenditures. C) causes the real value of the money balances to increase, in turn increasing total planned real expenditures. D) causes the real value of the money balances to decrease, in turn decreasing total planned real expenditures.
When a price ceiling that has an impact is imposed, it has the effect of
A. decreasing quantity supplied and increasing quantity demanded. B. decreasing both quantity supplied and quantity demanded. C. increasing quantity supplied and decreasing quantity demanded. D. increasing both quantity supplied and quantity demanded.
For a perfectly competitive firm, when MC is less than MR
A) the producer has an incentive to expand output. B) the producer has an incentive to decrease output. C) the producer has no incentive to change production. D) economic profits must be positive.
Briefly describe changes in life expectancy, average height, and infant mortality in the United States since 1850
What will be an ideal response?