The government used the Herfindahl-Hirschman index to determine if a proposed merger will lead to excessive concentration

The demand curve for a perfectly competitive firm is horizontal because

A) consumers are willing to pay any price to obtain its product. B) its production decisions cannot influence the market price. C) the firm profits from setting its price higher than the market price. D) its product is easy for consumers to differentiate from those of other firms.

Which of the following addresses agency costs?

a. advertising for employee positions in as many outlets as possible b. hiring only from job fairs c. spot checks of the quality of employee work d. reducing the number of holidays