Under which of the following circumstances is the principal-agent problem likely to be most serious
a. Between general practitioners and patients.
b. Between surgeons and patients.
c. Between hospitals and nurses.
d. Between dentists and physicians.
e. Between physicians and lawyers.
B
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"Market power" refers to a firm's ability to:
A. influence the price its competitors charge. B. undercut its competitors' prices. C. raise its price without losing all of its sales. D. force consumers to buy high-priced products.
What do you mean by Coase theorem?
What will be an ideal response?
Restaurants, video rental stores, clothing stores, and music stores are examples of industries in which firms differentiate their products by offering them at more locations. This is an example of a(n) ________ market.
A. perfectly competitive B. monopoly C. monopolistically competitive D. oligopoly
Actual real GDP will be above potential GDP if
A) firms are producing below capacity. B) firms are producing at capacity. C) firms are producing above capacity. D) inflation is rising.