If a good that generates positive externalities were produced and priced to take into account these spillover benefits, then its:

a. price and output would increase.

b. output would increase but price would remain constant.

c. price would increase and output would decrease.

d. price would increase but output would remain constant

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? a) compensating managers with stock options, b) financing risky projects with additional debt, c) the threat of hostile takeovers, d) the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions, e) abolishing the security and exchange commission

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.

The research of robert siegler and eric jenkins on the development of the counting-on strategy is an example of design.