Incentives are

A. potential rewards available if a particular activity is undertaken.
B. ineffective as a device to get people to behave in a certain fashion.
C. useless when people behave rationally.
D. inappropriate ways to obtain a certain kind of behavior.


Answer: A

Economics

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A pure monopolist is selling 7 units at a price of $12. If the marginal revenue of the 8th unit is $4, then the price of the 8th unit is

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