Refer to the diagrams. If $4 is Firm B's profit-maximizing price, its:
A. ATC must be $4.
B. MC must be $4.
C. MR must be $4.
D. MC must be zero.
D. MC must be zero.
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Refer to Scenario 17.3. Moral hazard would be eliminated in this situation if
A) the insurer would always charge $300. B) the insurer would always charge $6000. C) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium upward if it is not. D) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium downward if it is not. E) the fire did not occur.
The International Monetary Fund was created
A) in 1945 by the Bretton Woods Agreement. B) to collect money from member countries that were running balance of payments deficits. C) in 1971 when President Richard Nixon signed the Bretton Woods Agreement. D) in the aftermath of World War II to help nations move off of the gold standard.