Skimming pricing involves offering new products at a premium price

Clark, quarterback for the Metropolis Superheroes, Inc., football team, is also the majority shareholder. He performs no services other than playing as quarterback for the team. His salary is twice that of the next highest-paid player in the league, even though his performance is below average for a quarterback. What is the most likely treatment of his salary upon audit of the Metropolis Superheroes by the IRS?

a. It is not deductible at all. b. It is deductible in full. c. It is deductible up to the amount of the next highest paid player d. It is deductible to the amount of the reasonable value of Clark's services.

In Ruskin's fictitious economy involving two producers and a merchant, the wealth of the economy was less than it might have otherwise been for which of the following reasons?

a. The producers were forced to compete against one another b. The merchant manipulated the market for his own enrichment c. The producers withheld production to force the merchant to lower his prices d. There was a drought