Incentives are not likely to be a problem if:
A. all actions are observable.
B. actions are not observable.
C. workers' efforts are not contractible.
D. only some actions are observable.
Answer: A
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If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $8 and they are paying the profit-maximizing wholesale price of $20, what is the retail price of the product?
A) $12 B) $28 C) $8 D) $20
A firm will continue to produce if total revenue is greater than total variable cost even if total revenue is less than fixed cost
a. True b. False
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. The unregulated (market) amount of cars is
A. 25. B. 35. C. zero because any production results in an external cost. D. indeterminate from the information given.
If the money supply in an economy is $100,000, currency in circulation is $50,000, amount in savings accounts is $18,000, travelers' checks is $12,000, and the amount in money market accounts is $9,000,
then what is the amount held in checking accounts in the economy?