In a franchised network in which all managers are required to pay a percentage of their sales to pay for system-wide advertising, there ________ a free -rider problem and it is ________ likely that the system-wide quantity of advertising will be optimal.

A) is; less
B) is not; more
C) is not; less
D) is; more


B) is not; more

Economics

You might also like to view...

What is the most common type of business?

A) partnership B) corporation C) sole proprietorship D) They are equally represented because of federal laws.

Economics

M2 consists of: a. M1 plus savings accounts, small time deposits, money market mutual funds, and miscellaneous near-monies. b. coins, currency, and checkable deposits only

c. only near-monies. d. M1 plus time deposits only. e. M1 plus money market mutual funds only.

Economics

In the open-economy macroeconomic model which of the following falls if there is an increase in the budget deficit?

a. the interest rate b. net exports c. the exchange rate d. All of the above are correct.

Economics

The foreign purchases, interest rate, and real-balances effects explain why the:

A. Aggregate demand curve is downward-sloping B. Aggregate demand curve may shift to the left or right C. Economy will adjust towards equilibrium D. Aggregate expenditures schedule may shift up or down

Economics