Dan Unowsky assigns his computer repairers four tasks: customer service, replacement of broken parts, clean-up of equipment, and sale of used equipment to customers. If the company provides a 10 percent commission for all sales made by employees, then
A. employees will clearly emphasize the clean-up task.
B. replacement of broken parts will clearly be favored by employees.
C. employees may ignore other tasks when faced with a potential sale.
D. the entire production process will be speeded up by the sales incentive.
Answer: C
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John keeps beehives and sells 100 quarts of honey per month. The honey market is perfectly competitive, and the price of a quart of honey is $10. John has an average variable cost of $5 and an average fixed cost of $3
At 100 quarts per month, John's marginal cost is $10. a) Is John maximizing his profit? If not, what should John do? b) Calculate John's total revenue, total cost, and total economic profit or economic loss when he produces 100 quarts of honey.
In a simultaneous game,
A) players have the benefit of seeing the moves of others before they make their moves. B) every player is looking forward and reasoning forward. C) one player has to go first. D) players do not have the benefit of observing the moves of other players before making their own.
Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?
a. People will alter their behaviors. b. Incentives will be distorted. c. Total utility will likely remain constant. d. The allocation of resources will be less efficient .
It has been suggested by some economists that rent seeking activity often occurs within families, particularly when an inheritance is involved
Indicate whether the statement is true or false