What is moral hazard?
What will be an ideal response?
Moral hazard arises when one party to a contract passes the cost of his or her behavior on to the other party of the contract.
Economics
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Small pizza parlors exist in just about every town. Anyone can open a pizza parlor, and the pizzas from one parlor typically have different tastes and sizes than pizzas from another parlor. Thus, the pizza industry is an example of
A) perfect competition. B) monopoly. C) oligopoly. D) monopolistic competition.
Economics
If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:
a. $20. b. $30. c. $50. d. $70.
Economics