What's the opportunity cost of taking an unfair advantage in a deal?
A. Future deals may not occur or may come at a much higher cost.
B. Building a reputation for being untrustworthy if the deal is likely to be repeated.
C. Probably nothing, if the transaction is only taking place once.
D. All of these statements are true.
Answer: D
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The efficient quantity of a public good is the quantity that sets the marginal social benefit from the good equal to the good's marginal social cost
Indicate whether the statement is true or false
The less bowed the Lorenz Curve, the
A) more equal the income distribution. B) less equal the income distribution. C) greater the number of low-income people. D) greater the number of high-income people.
The total revenue curve for a perfectly competitive firm will be a straight line with positive slope.
Answer the following statement true (T) or false (F)
In the area of business, rent-seeking often involves
a. the use of resources to construct high-priced rental housing. b. the use of resources to secure and maintain a grant of monopoly power from the government. c. an agreement between firms to raise prices and limit entry. d. an agreement between a firm and a customer that makes both parties better off.