A firm can better align its salespersons goals to its own if
a. It bases performance evaluation on revenues
b. It pays its salespeople a commission based on profits
c. It pays its salespeople a commission based on sales
d. It pays its salespeople a salary
b
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Jonah lives in a small town where there is only one Mexican restaurant. Which of the following is likely to be true about the price elasticity of demand for meals at the Mexican restaurant?
A) Demand is likely to be perfectly elastic. B) Demand is likely to be relatively elastic. C) Demand is likely to be relatively inelastic. D) Demand is likely to be perfectly inelastic.
Many people leave their servers tips in restaurants, even when they are not likely to visit the restaurant again. This is evidence that
A) people would rather pay for good service at an inexpensive restaurant than pay higher prices and receive poor service at an expensive restaurant. B) people treat others fairly even if doing so makes them worse off financially. C) there has been an improvement in the service people receive in restaurants over time, partly because the restaurant industry has become more competitive. D) people enjoy eating at restaurants more than eating at home.
Oligopolies can end up looking like competitive markets if the number of firms is
a. large and they all cooperate. b. large and they do not cooperate. c. small and they all cooperate. d. small and they do not cooperate.
Risk aversion helps to explain various things we observe in the economy, including
a. adherence to the old adage, "Don't put all your eggs in one basket.". b. insurance. c. the risk-return trade-off. d. All of the above are correct.