Answer the following statements true (T) or false (F)
1) Managers of the dairy farmers association can eliminate the industrywide free-rider problem using the law that makes checkoff payments mandatory.
2) In regard to industrywide advertising, creating small groups of participating firms increases the opportunity for free-riding.
3) Resale price maintenance is only profitable if consumers' valuation of the product-specific service exceeds the retailer's marginal cost of providing it.
4) As a manager, if you are aware that your competitors are bribing officials, your firm does not face negative legal outcomes if you report the bribery.
5) As a manager of a firm operating a foreign market, the FCPA does not allow you to make small facilitating payments, but the U.K. Bribery Act does.
1) TRUE
2) FALSE
3) TRUE
4) TRUE
5) FALSE
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The above figure shows the marginal benefits and marginal costs of a college education. If no subsidies are paid, colleges charge tuition of
A) $0. B) $5,000. C) $10,000. D) $15,000.
In both perfect competition and monopoly, a firm: a. maximizes profit by equating marginal revenue to marginal cost
b. will shut down in the short run if price is less than average variable cost. c. will always earn a zero economic profit. d. will be characterized by both (a) and (b).
Herbert Simon has concluded that decision making in industry is often best described as
a. optimizing behavior. b. profit maximizing. c. satisficing. d. saturating.
The rate at which a consumer is willing to exchange one good for another while maintaining a constant level of satisfaction is called the
a. relative expenditure ratio. b. value of marginal product. c. marginal rate of substitution. d. relative price ratio.