One of the ways of coping with the principal-agent problem is
A) giving orders.
B) providing incentive pay.
C) shirking.
D) using only short-term contracts.
B
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Even when earning zero profit, exporters (nearly) equalize prices across markets. ?
Answer the following statement true (T) or false (F)
Which of the following is a reason why a firm would experience diseconomies of scale?
A) As the size of the firm increases, it must operate in other countries where differences in language, customs, and laws increase its average costs. B) To finance an increase in the size of its plant a firm must borrow more money or sell more shares of stock. C) As the size of the firm increases, it becomes more difficult to find markets where it doesn't already have operations. D) As the size of the firm increases it becomes more difficult to coordinate the operations of its manufacturing plants.
Which of the following would be an example of an unemployed resource?
a. John has been laid off from his job as an auto mechanic. b. Betty, a computer specialist, takes a job as a hotel maid. c. Mary, a senior citizen, receives a social security check. d. Sam, 10 years old, is in the fifth grade. e. a 10-year-old computer is now only used as a word processor.
Perfect competition and monopolistic competition differ
A. with respect to the elasticity of their demand curves. B. with respect to product differentiation. C. with respect to influence over the price they charge. D. All of these choices are difference between them.