Stock options do not eliminate the principal-agent problem entirely for each of the following reasons except which one?
A) A company's profit depends on the actions of all employees.
B) A company's stock prices fluctuate for reasons not directly related to a company's profit.
C) A company's stock price rarely changes.
D) A company's executive does not have unlimited control over all employees and their actions.
C) A company's stock price rarely changes.
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The degree of responsiveness of aggregate output to a price change declines as the:
a. rate of savings increases. b. economy approaches its maximum potential output. c. level of real GDP declines over time. d. the price elasticity of imports declines. e. the excess capacity of all the firms in the economy increases over time.
Which English philosopher set out to develop an arithmetic formula for measuring happiness and along the way invented the util?
A) John Maynard Keynes B) Milton Friedman C) Jeremy Bentham D) Adam Smith
Three firms agree to operate as a monopoly and charge the monopoly price of $100 for their product and (jointly) produce the monopoly quantity of 20,000 units. If the competitive price for the product is $35, under the Clayton Act these three firms face treble damages of ______
A) $1,300,000 B) $3,900,000 C) $3,000,000 D) $1,000,
Even if entry is easy, oligopolists possess sufficient market power so that profits are assured in the long run
a. True b. False Indicate whether the statement is true or false