In the presence of asymmetric information, production efficiency is assured when the principal and agent share the profit
Indicate whether the statement is true or false
False. Since the agent faces full marginal cost but receives only a fraction of the marginal benefit, joint profit is not achieved.
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Assume that the total revenue curve for a firm is given by TR = 2Q. We know for sure that:
a. the firm is a monopolist b. the firm is not a monopolist c. the firm may be a monopolist or a perfectly competitive firm d. this question is too hard for me and I do not know the correct answer so give me a zero e. none of the above
The invention of the cotton gin ushered in the Industrial Revolution and began a long period of technological innovation. What did this technological change do the short-run supply curve?
A) It moved the economy down along a stationary short-run aggregate supply curve. B) It shifted the short-run aggregate supply curve to the right. C) It shifted the short-run aggregate supply curve to the left. D) It moved the economy up along a stationary short-run aggregate supply curve.