Risk averse individuals will diversify their investments because this will
a. increase their expected returns.
b. provide them with some much-needed variety.
c. reduce the variability of their returns.
d. reduce their transactions costs.
Question 2
Mechanisms that manufacturers can use to deal with misaligned retailer incentives include
a. setting a minimum retail price
b. allowing many retailers to sell the product in each market
c. preventing retailers from compensating sales staff for demonstrating the product
d. eliminate manufacturer staff that was demonstrating the product in stores
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