A contingent contract can create production inefficiency; however, many principals accept this because
A) inefficiency is inevitable.
B) monitoring is costless.
C) risk is reduced.
D) profit will increase as a result.
C
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The textbook defines any business with less than __________ in assets to be "small."
A) $100,000,000 B) $10,000,000 C) $1,000,000 D) $500,000
A firm's ___________ consist of expenditures that must be made before production starts that typically, over the short run, _______________, regardless of the level of production.
a. fixed costs; do not change b. variable costs; are constantly changing c. fixed costs; are consistently changing d. variable costs; do not change
Refer to the information provided in Table 19.4 below to answer the question(s) that follow.Table 19.4Total IncomeTotal Taxes$10,000 $1,000 20,000 2,400 30,000 4,500 40,000 8,000Related to the Economics in Practice on page 393: Refer to Table 19.4. If income increases from $30,000 to $40,000, the marginal tax rate is
A. 5%. B. 20%. C. 35%. D. indeterminate from this information.
How much is the APS?
C = $4.5 trillion Disposable income = $5 trillion Autonomous consumption = $3 trillion