Socially inefficient outcomes are possible when
A) uninformed parties want to avoid opportunistic behavior by informed parties.
B) informed parties engage in opportunistic behavior against uninformed parties.
C) those in charge are risk neutral.
D) workers do not own the firm.
A
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A monopolistically competitive firm is producing an output level where marginal revenue is greater than marginal cost. What should this firm do to increase its profit or reduce its losses?
A) The firm should increase its implicit costs. B) The firm should lower its price. C) The firm should decrease its fixed costs. D) The firm should raise its price.
One factor hastening the demise of the Soviet Union was _____
a. its military alliance with Cuba b. its attempt to keep up with the United States in an arms race c. its inability to predict the optimal amount of defense spending d. its strong economic output
Economists would largely motivate employees by appealing to their
A) compensation. B) need for time off. C) intrinsic motivation. D) none of these choices.
If the percentage change in quantity demanded is greater (in absolute value) than the percentage change in price, then demand
a. determines supply b. is indeterminate c. is elastic d. is inelastic e. is unit elastic