Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets
b. loggers select the most profitable trees to harvest even when they are paying a fixed fee
c. Drivers of heavier, safer cares are more likely to run stop signs
d. workers on commission work harder than those paid an hourly wage
b
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A monopoly's economic profits are represented by
a. [price minus marginal cost] times number of units sold. b. [price minus average cost] times number of units sold. c. [marginal revenue minus price] times number of units sold. d. [marginal cost minus price] times number of units sold.
A patent is a(n)
a. government grant to an innovating firm of monopoly privilege in the production of a good or the use of a technology for a 17-year period b. annual award of monopoly privilege to a firm for the most creative invention of the year c. payment from the government to a firm for the most creative invention of the year d. grant of perpetual monopoly rights to a firm issued by the government e. expression of monopoly power in a monopolistically competitive industry