An agreement in which the incentives of both parties match their goals as closely as possible is:
A. a corporate takeover contract.
B. an incentive-compatible contract.
C. an X-inefficiency contract.
D. a public good.
Answer: B
Economics
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Which of the following correctly completes this statement? The monopolist's marginal revenue
A) will be greater than price. B) will be less than price. C) will be equal to price. D) will be greater than total revenues.
Economics
Compared to a no-trade situation, if Italy imported wine,
a. the price of domestic Italian wine would decline. b. Italian wine producers would increase their prices. c. Italian wine producers would increase their profits. d. domestic wine production in Italy would expand.
Economics