Group disaster Mary, Jane, Janet and Samantha chose each other for a group project since they knew that they were all high achievers. Once the project rolled around however, their group actually did more poorly than the group where all the members knew that others were slackers. How did that happen?
QUESTION 2It is illegal for a business to price discriminate when selling goods to other businesses unless Both A & B are true
a. Price discounts are cost-justified
b. Discounts are offered to meet competitors' price
c. Either A or B is true
d.
QUESTION 3A widget producer is deciding whether to compensate widget makers on a salary basis or a per unit basis. Given that it is difficult to monitor shirking, which of these pay schedules would provide stronger performance incentives?
a. Per piece compensation
b. Salary
c. Both of them
d. Neither of them
QUESTION 4The Robinson-Patman act
a. Is a part of the antitrust laws
b. Makes it illegal to give a price discount on a good sold to another business
c. Is also known as the Anti-Chain-store Act
d. All of the above
QUESTION 5Marginal cost typically ________ and marginal revenue typically _________ with increasing output.
a. rises; falls
b. falls; rises
c. rises; rises
d. falls; falls
QUESTION 6For direct price discrimination to work
a. The firm need not be able to identify the members of the low-value group
b. The firm be able to charge the low-value customers a lower price than the higher-value customers
c. The firm need not worry about any arbitrage since all its customers are charged the same price
d. It needs to be too complicated for the customers to understand
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