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Author Question: When local governments ignore all other considerations and award cable TV franchises to the firms ... (Read 57 times)

mynx

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When local governments ignore all other considerations and award cable TV franchises to the firms that offer the highest money bids, they
 
  A) discriminate against the poor.
  B) encourage corruption.
  C) introduce delay into the system but increase its efficiency.
  D) reduce the likelihood of illegal bribes.
  E) increase the likelihood the winning firm will be incompetent.

Question 2

With an increase in the demand for a good, if prices are not allowed to increase:
 
  A) social surplus will be maintained at maximum.
  B) there will be no incentive for firms to increase the quantity supplied of the good.
  C) a surplus will occur in the market.
  D) there will be an increase in overall efficiency in the market.



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duy1981999

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Answer to Question 1

D

Answer to Question 2

B





 

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