A good is considered to be a rival good if
A) you can keep those who did not pay for the good from enjoying its benefits.
B) your consumption of the good reduces the quantity available for others to consume.
C) you cannot keep those who did not pay for the good from enjoying its benefits.
D) it is jointly owned by all members of a community.
B
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Refer to Figure 16-2. Suppose Plato Playhouse price discriminates. Which of the following statements is true?
A) By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby increasing economic efficiency. B) By charging two different prices, the theatre company essentially allows those willing to pay higher prices to subsidize those who are not. C) Plato Playhouse will earn higher profits if it charges a single price—an average of the two prices— instead of charging two different prices to the two different groups of customers. D) By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby improving equity.
Straight line pay for performance
a. Provides incentives to increase performance b. Eliminates the perverse incentive to hide information c. Does not link compensation to where the performance is relative to the budget target d. All of the above