Moral hazard occurs when an agreement encourages undesirable behavior

Each of the following would cause an increase in the supply of baseballs EXCEPT

A) an improvement in technology. B) a decrease in the cost of labor used to produce baseballs. C) an expectation that the price of baseballs will rise in the future. D) an increase in the number of baseball producers.

The main difference between a firm that is a price searcher and a firm that is a price taker is that a

a. price searcher produces products that are identical to its competitors' products. b. price taker can decide what price to charge for its product. c. price searcher cannot decide what price to charge for its product. d. price searcher will still be able to sell some of its product if it increases its price.