Author Question: If the manager of a nonprofit enterprise sets prices below market clearing levels, she A) ... (Read 81 times)

oliviahorn72 · **on:** Jun 29, 2018

If the manager of a nonprofit enterprise sets prices below market clearing levels, she

A) increases the net revenue of the enterprise.
B) provides herself with control over a valuable good.
C) reduces her personal popularity.
D) produces all of the above consequences.

Question 2

Refer to the scenario above. Which of the following is likely to happen if the service center has a reputation of trustworthiness?

A) You will trust the mechanic and he will cooperate.
B) You will trust the mechanic but he will defect.
C) Neither of you will gain from trade.
D) Only the mechanic will gain.