A futures contract involves counterparty risk and illiquidity

Which of the following is TRUE of incentives?

A) Different people are motivated by different incentives. B) Money is the only measure of incentives. C) All of the people in a particular nation are motivated by the same incentives. D) In economics, people are assumed to respond to disincentives instead of incentives.

In order to maximize profits, a monopolist should produce where the average revenue is equal to marginal cost

a. True b. False Indicate whether the statement is true or false