There is no free lunch means
A) each action has a cost.
B) each choice involves a free item.
C) each decision has elements of free goods in it.
D) if you get your lunch paid for by someone else, it is free, but if you have to pay, it is not free.
E) if you are invited to lunch by someone, you are not expected to pay for it.
QUESTION 2It more difficult for firms to reach collusive agreements when they are of different sizes, with substantially different production costs and estimates of demand conditions, than when these differences are smaller.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Under a principal/agent relationship, the agent faces high costs of determining whether the principal is actually making efforts to the extent the agent expects.
Indicate whether the statement is true or false
QUESTION 4According to the text, many firms who adopt TQM find that
A) the firm increases sales and profits.
B) quality is costly.
C) quality is free.
D) quality increases market share.
E) customers do not care about quality.
QUESTION 5The joint profit maximization solution for a cartel is a attempt to achieve the same result as would a monopolist who owned all the firms in the cartel.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Maximizing the benefits of a transaction made under a contract often requires specific investments that lose value if the parties fail to fulfill their commitments.
Indicate whether the statement is true or false
QUESTION 7TQM means
A) total quiet management.
B) total quality maneuvers.
C) total quality management.
D) totally quiet motion.
E) totally quality means.
QUESTION 8When an oligopoly cuts its price to try and attract customers from rivals, it could lead to a price war.
a. True
b. False
Indicate whether the statement is true or false
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