Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be able to work three hours once he arrives in Atlanta, whereas traveling by plane will enable him to work eight hours. His expected income from each hour of work in Atlanta is $30 . If Maurice is a rational decision maker, he will fly if and only if the price differential

Which of the following is an example of moral hazard?

A) I hire you to work in my garden for a fixed fee, and you work hard all day. B) I hire you to work at an hourly rate and you work as slowly as possible. C) You apply for the job only because I pay a fixed wage per day, no matter how much or little you do. D) You agree to be paid by the weed to work in my garden, and then don't work hard.

The Celler-Kefauver Act made it illegal to

a. provide selective discounts b. set prices below marginal cost c. conspire to collude d. buy a competitor's patents, plants, or equipment e. price discriminate