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Double Jeopardy
A condition where an entrepreneur's main source of income and net worth depend on the entrepreneur's organization.
a) Explain the perverse incentive. b) What makes the incentive perverse? c) How could the incentive makers better the incentive?
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At a market price of $21 a toy, what quantity does the firm produce in the short run and does the firm make a positive economic profit, a zero economic profit, or an economic loss?
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