What causes employers or employees to behave ...

[Deast7027]

What causes employers or employees to behave opportunistically?

Question 2

Brand names help
 A) create commodities.
  B) maintain market power.
  C) create competition.
  D) keep economic profits at zero.

[Kjones0604]

Answer to Question 1

Incompleteness of contracts give both the employer and the employee potential incentives
to act opportunistically, because each knows it will cost the other to form a new relationship that replaces their current one. In reality, however, employment often lasts for decades. Although unwritten, an employment contract can be enforced by the employer's reputation.

Answer to Question 2

B