By making most of its employees owners of the company, United Airlines attempted to
A) cope with the unlimited liability problem.
B) change its business organization from a corporation to a partnership.
C) address the principal-agent problem between the workers and managers.
D) increase the role of the command system in managing the firm.
C
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For W to be an effective control variable in IV estimation, the following condition must hold
A) E(ui) = 0 B) E(ui|Zi,Wi) = E(ui|Wi) C) E(uiuj) ? 0 D) there must be an intercept in the regression
If a monopolist is producing the quantity at which marginal revenue exceeds marginal cost, it should
A) continue to produce this amount if it wants to maximize profits. B) reduce output if it wants to maximize profits. C) reduce price and keep output unchanged if it wants to maximize profits. D) increase output if it wants to maximize profits.
Suppose in a certain city the demand for low-cost housing can be characterized by the equation P = 500 - 2Q, where Q is housing measured in square feet. Further, suppose that supply is characterized by the equation: P = 25 + 3Q. Suppose that the government feels that the grant is not enough and, in addition, imposes a price ceiling of $270. What will happen to consumer surplus? What are the drawbacks?
What will be an ideal response?
When demand increases in a perfectly competitive market, in the short run ________, and in the long run ________.
A. quantity supplied increases; prices increase B. quantity supplied decreases; prices decrease C. prices increase; supply increases D. prices increase; prices stay permanently higher