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Author Question: The Chicago Heights school district study found that A) teachers have a low occurrence of moral ... (Read 144 times)

nevelica

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on: Jun 29, 2018
The Chicago Heights school district study found that
 
  A) teachers have a low occurrence of moral hazard.
  B) students did much better with a teacher who received merit pay.
  C) adverse selection results among teachers with poor students.
  D) teachers did not response to pay incentives.

Question 2

When a natural monopoly is regulated using a marginal cost pricing rule, what can you say about the firm's profit and the market's efficiency?
 
  What will be an ideal response?


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jessofishing

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Using a marginal cost pricing rule, the monopoly is incurring an economic loss. However, there is an efficient quantity of output produced so that the market is efficient with no deadweight loss.


nevelica

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Reply 2 on: Jun 29, 2018
Gracias!

Perkypinki

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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