For the affected individuals, pecuniary externalities can be as harmful as technological externalities
a. True b. False
a
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When can backward induction be used to arrive at the equilibrium for a game?
What will be an ideal response?
Firms are organized to keep their costs as low as possible by
A) comparing external transactions costs with internal operating cost. B) analyzing supply and demand conditions. C) minimizing their use of borrowed funds. D) utilizing the latest technology.
Defense, construction, and management consulting are usually set up as
A. network designs. B. Uforms of business organizations. C. Mforms of business organizations. D. matrix designs.
Most credit cards charge a relatively high rate of interest, yet many people carry them, including people who would be considered low-risk borrowers. Our discussion of adverse selection said that low-risk borrowers should have been discouraged from these. What gives?
What will be an ideal response?