When you find the answer to your problem but settle for something else is an example of the

In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an eight-hour day, Bob can produce either 8 loaves of bread or 8 pounds of butter. Andy has a comparative advantage in the production of

A) bread, while Bob has a comparative advantage in the production of butter. B) butter, while Bob has a comparative advantage in the production of bread. C) bread and neither has a comparative advantage in the production of butter. D) both bread and butter.

The problem of production in multi-plant firms with asymmetric information can be solved by paying the manager

A) a piece rate, some constant amount per unit of output produced. B) a larger amount for each unit than was paid for the previous unit, to reflect increasing marginal cost. C) a smaller amount for each unit than was paid for the previous unit, to reflect decreasing marginal revenue. D) an annual bonus that increases with each unit of output up to capacity, and decreases with each unit of output past capacity. E) an annual bonus that is calculated decreases with each unit of output up to capacity, and increases with each unit of output past capacity.