Deck 14: Bargaining

Question 1

​In the simultaneous move labor negotiation game:

A)​The payoffs from bargaining hard are only higher if your opponent accommodates
B)The payoffs from bargaining hard are only higher if your opponent bargains hard
C)The payoffs are always higher if you bargain hard
D)​The payoffs are always higher if your opponent bargains hard

Answer 1

A

Question 2

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​If the shopkeeper goes first and quotes a high price,what is the best response of the customer?

A)​Accept the high price
B)Yell at the store owner
C)Walk away from the deal
D)​Swear off shopping forever

Answer 2

A

Question 3

​When buying a car from a commission salesman you improve your bargaining position by

A)​shopping for last year's model when the new model year cars are arriving
B)shopping when the showroom is full of customers
C)shopping when the car lot has few cars left unsold
D)​shopping toward the beginning of the month

Answer 3

A

Question 4

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​Looking ahead to how the shopkeeper is more likely to respond what price should the customer more likely to quote?

A)​High price
B)Low price
C)Let the shopkeeper quote the price
D)​A compromised price between the high and the low

Question 5

​For the following questions
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
​If the Union threatens a strike,what is the firm's best response?

A)​Bargain hard
B)Accommodate
C)Run
D)​Hide

Question 6

​In the simultaneous move labor negotiation game:

A)​The payoffs are always higher if you accommodate
B)The payoffs are always higher if you bargain hard
C)The payoffs from accommodating are only higher if your opponent bargains hard
D)​The payoffs from accommodating are only higher if your opponent accommodates

Question 7

​For the following questions
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
​If the firm hires security guards to enforce a lockout,what are they implying?

A)​They would always accommodate
B)They would always bargain hard
C)They would not accommodate
D)​Both B&C

Question 8

​In the simultaneous move labor negotiation game:

A)​Neither party prefers bargaining hard in the Nash equilibrium
B)Both the parties want to end up in the least efficient outcome
C)Both parties bargain hard in the Nash equilibrium
D)​Both parties want to stay in the prisoner's dilemma

Question 9

​For the following questions
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
​If the firm threatens a lockout (and the threat is credible),what is the union's best response?

A)​Bargain hard
B)Accommodate
C)Run
D)​Hide

Question 10

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​If the shopkeeper goes first and quotes a low price,what is the best response of the customer?

A)​Accept the low price happily
B)Walk away from the deal
C)Slam the storeowner's door on the way out
D)​Laugh at the storeowner

Question 11

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​If the customer moves first,with a low price what is the best response of the shopkeeper

A)​Accept the low price
B)Walk away from the deal
C)Throw the haggling customer out of your store
D)​Shut down your store

Question 12

​For the following questions
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
​Is this Nash equilibrium efficient?

A)​Yes,because the sum of payoffs is highest
B)No,because both the parties can do better
C)No,because both the parties are maximizing their profits
D)​All of the above

Question 13

​For the following questions
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
​By threatening to lockout the workers,the firm has

A)​Eliminated half of the strategies
B)Forced the union to choose the best response in the firm's best interest
C)Made it in the union's best interest to not strike
D)​All of the above

Question 14

​For the following questions
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
​If the union leader has already sent strikers to the picket line before entering negotiations,the union has

A)​Eliminated half of the strategies of the game
B)Forced the firm to choose the best response in the union's best interest
C)Made it in the firm's best interest to accommodate their requests
D)​All of the above

Question 15

​In the strategic view of bargaining:

A)​Bargaining is described by standard game theory rules
B)The game is played without specific strategies
C)The game always results in a fifty-fifty split
D)​The game is played just for the fun of it

Question 16

​In the sequential negotiation games:

A)​You can induce a change in the strategy in your opponent only if your threat is believed
B)Any threat can induce a change in strategy in your opponent
C)The best threat is the one that you do not have to carry out
D)​A and C

Question 17

​For the following questions
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
​What would be the Nash equilibrium of this game?

A)​Bargain hard,bargain hard
B)Firm bargains hard,union accommodates
C)Union bargains hard,firm accommodates
D)​Both B&C

Question 18

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​If the customer moves first with a high price what is the best response of the shopkeeper

A)​Accept the high price happily
B)Walk away from the deal
C)Throw the haggling customer out of your store
D)​Laugh at the customer's face

Question 19

​For the following questions
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
​Could either party do better?

A)​Yes,both parties can do better without hurting each other if they cooperated
B)Yes,one party can do better,but only at the expense of the other
C)No,neither party can do better
D)​No,each party has its best possible outcome

Question 20

​In the strategic sequential labor negotiation game:

A)​The first mover has an advantage
B)The second mover has an advantage
C)There is no advantage to either mover
D)​None of the above

Question 21

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​Suppose the shopkeeper is known to usher low bidders out of the store even if it means giving up the sale.If the customer moves first,he would

A)​Offer the high price
B)Offer the low price
C)Get ushered out of the store
D)​All of the above

Question 22

​Which of the following will improve your bargaining position with customers

A)​The product your team produces has become more costly to produce
B)New firms have entered the market with competing products for the ones your team produces
C)Your competitors have developed new products that contain more of the features that your team produces
D)​There are fewer close substitutes for the product your team supports

Question 23

​When buying a car from a commission salesman you improve your bargaining position by

A)​shopping when the new model year cars have just arrived
B)shopping when the showroom is full of customers
C)shopping when the car lot has very few cars left unsold
D)​shopping toward the end of the month

Question 24

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​Looking ahead at how the customer is more likely to react,what price should the shopkeeper charge?

A)​High price
B)Low price
C)Offer the good for free
D)​A compromised price between the high and the low price

Question 25

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​Would the shopkeeper be able to convince the customer that he would usher the customer out if he gets a low price?

A)​Yes,such threats are always credible
B)No,because losing the sale is not in the shopkeeper's best interest
C)No,because he would get more by accommodating the low price than losing the sale
D)​Both B&C

Question 26

​In the nonstrategic view of bargaining

A)​The first-mover usually gains more
B)The second-mover usually gains more
C)The third-mover usually gains more
D)​The outcome depends on which mover can commit to a strategy

Question 27

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​In the strategic view of bargaining the outcome depends on

A)​Who makes the first move
B)Who can commit to a position
C)Whether or not the other party can make a countermove
D)​All of the above

Question 28

​When buying a car from a commission salesman you improve your bargaining position by

A)​shopping when the new model year cars have just arrived
B)shopping when the showroom is full of customers
C)shopping when the car lot has many cars left unsold
D)​shopping toward the beginning of the month

Question 29

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​Suppose this customer is known to throw a fit and scare away other customers if charged high prices.If the shopkeeper moves first,he would ask for

A)​A high price
B)A low price
C)A pony
D)​All of the above

Question 30

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​Would the customer be able to convince the shopkeeper that he would walk out if he receives a high price?

A)​Yes,because walking out is most profitable move for the customer
B)No,because walking out is an unprofitable strategy for the customer
C)No,because walking out is not a credible threat
D)​Both B&C

Question 31

​Which of the following will improve your bargaining position when contracting with a supplier

A)​Your supplier merges with an another large supplier of the same product
B)You redesign your product to be more feasibly accepting of many suppliers' parts
C)You redesign your product so that your preferred supplier is more integral to product success
D)​Your supplier's chief competitor has exited the market

Question 32

​In the non-strategic sequential labor negotiation game:

A)​The ability to commit to a strategy gives you an advantage
B)The ability to commit to a strategy gives your opponent an advantage
C)The ability to commit to a strategy is irrelevant
D)​Players should simply not commit to a strategy to obtain an advantage

Question 33

​The disagreement value in a nonstrategic game is most closely associated with

A)​opportunity costs
B)fixed costs
C)variable costs
D)​accounting costs

Question 34

​Which of the following will improve your bargaining position when contracting with a supplier

A)​You are better able to accommodate other suppliers' brands
B)You must only buy the raw material from your preferred supplier to ensure quality
C)Two of your suppliers merge
D)​Your final product that includes this component becomes more profitable

Question 35

​In the nonstrategic view of bargaining

A)​The games are played without identifying the specific strategies
B)Both the parties usually get some positive surplus
C)The bargaining outcome is affected by both the parties' disagreement values
D)​All of the above

Question 36

​To improve your own bargaining position

A)​decrease the value of your outside options
B)increase the value of your outside options
C)do not alter the value of your outside options
D)​increase the value of your opponent's outside options

Question 37

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
​This sequential game illustrates a

A)​Third mover advantage
B)Second mover advantage
C)First mover advantage
D)​No advantage based on moves

Question 38

​Unless you accept his 'final offer' your opponent threatens to scrap the whole deal:

A)​His threat is more believable if both parties would be harmed by scrapping the deal
B)His threat is more believable if he has better outside options
C)His threat is more believable if only he is hurt from the deal falling through
D)​His threat is more believable if he has balked at this course of action in the past

Question 39

​The reason we study the non-strategic sequential labor negotiation game:

A)​Is to show that these games usually go on for many rounds
B)Is to show the importance of the first mover being able to commit to an offer
C)Is to show the importance of the second mover being able to commit to an offer
D)​Is to show the irrelevance of mover position,given that he is able to commit to a position

Question 40

​Which of the following will improve your salary bargaining position

A)​Wait until the large project you were integral to is completed
B)Wait until your employer has hired many others with similar skills as yours'
C)Wait until your employer has invested greatly into a long-term project you lead
D)​Wait until your employer buys new machinery that you are incapable of operating

Question 41

​Under the non-strategic view of bargaining,the terms of agreement are determined by

A)​Your opponent's outside options
B)Your outside options
C)Your opponents gain from agreement
D)​All of the above

Question 42

​Under the non-strategic view of bargaining,the terms of agreement are determined by

A)​Your opponent's eagerness to reach agreement
B)Your outside options
C)Your opponents gain from agreement
D)​All of the above

Question 43

​You are a restaurant owner buying vegetables from a local farmer.You recently found out that another one of the farmer's clients,a competing restaurant has shut down,what would that do to your bargaining power?

A)​Increase your bargaining power
B)Decrease your bargaining power
C)Not affect your bargaining power
D)​None of the above

Question 44

​Use the following setup for questions
Consider a non-strategic game between a firm and its union.The value to the firm of getting the workers back to work is $5 million.The union's agreement value to get back to work is $5 million.The firm can hire nonunion workers,"scabs",so their disagreement value is 1 million and the union members can find temporary employment elsewhere,making the unions disagreement value $2million.
​The union would have a better bargaining position in the negotiations if

A)​The firm can hire individual workers at a lower wage
B)The union has low wage workers who cannot afford to be off work
C)The union has a strike fund to pay workers during work stoppage actions
D)​The firm can easily replace workers with machinery

Question 45

​When buying a car from a dealership,to get the best bargain

A)​Never stick to the first offer you make
B)Allow room for bargaining
C)Threaten to walk out if the dealer does not accept your offer
D)​Quote your highest willingness to pay

Question 46

​To save on negotiation costs when buying a car

A)​Always go towards the end of the day,when the seller does not get a chance to make a counteroffer
B)Threaten to leave if the car dealer says anything but yes to your offer
C)Carry only one cashier's check that cannot be modified
D)​All of the above

Question 47

​Under the non-strategic view of bargaining,the terms of agreement are determined by

A)​Each parties outside options
B)Your gain from agreement
C)Your opponents gain from agreement
D)​All of the above

Question 48

​Jim is haggling with a car dealer over the sale price of a used car.When he entered the store he was the only customer.This means that

A)​Jim has a better chance of having his offer accepted,since the seller does not have any outside offers
B)Jim has lower chances of having his offer accepted,since the seller has more outside offers
C)The disagreement value for the seller has increased
D)​Only A&C

Question 49

​Use the following setup for questions
Consider a non-strategic game between a firm and its union.The value to the firm of getting the workers back to work is $5 million.The union's agreement value to get back to work is $5 million.The firm can hire nonunion workers,"scabs",so their disagreement value is 1 million and the union members can find temporary employment elsewhere,making the unions disagreement value $2million.
When buying a car from a dealer,to get a better bargaining position

A)​Always carry your check book to show willingness to buy
B)Carry only blank checks to ease the transaction
C)Carry a cashier check that cannot be modified
D)​All of the above

Question 50

​When buying a car from a commission salesman you improve your bargaining position by

A)​shopping when the new model year cars have just arrived
B)shopping when the showroom is empty of customers
C)shopping when the car lot has only few cars left unsold
D)​shopping toward the beginning of the month

Question 51

​In most applications of negotiations,they

A)​Follow rules of a formal game
B)Follow the rules of games like the simultaneous move game of chicken
C)Rarely have rules like the ones that characterize formal games
D)​All of the above

Question 52

​Jim is haggling with a car dealer over the sale price of a used car.When he entered the store he was the only customer.During the negotiations,a second customer walks in and is interested in that particular car.At this point

A)​Jim has a better chance of having his offer accepted,since the seller does not have any outside offers
B)Jim has lower chances of having his offer accepted,since the seller has more outside offers
C)The disagreement value for the seller has increased
D)​This should not impact Jim's chances of having his offer accepted

Question 53

​The "axiomic" view of bargaining is the

A)​Strategic view of bargaining
B)Non-strategic view of bargaining
C)All of the above
D)​None of the above

Question 54

​The firm would have a better bargaining position in the negotiations if

A)​It can hire the non union "scabs" at a better wage
B)The union has younger workers who cannot afford to be off work
C)The union has a strike fund to pay workers during work stoppage actions
D)​Only A&B

Question 55

​You can capture a bigger piece of the pie if

A)​You can decrease your counter party's gains from reaching an agreement
B)You can increase you gain from reaching an agreement
C)All of the above
D)​None of the above

Question 56

​Use the following setup for questions
Consider a non-strategic game between a firm and its union.The value to the firm of getting the workers back to work is $5 million.The union's agreement value to get back to work is $5 million.The firm can hire nonunion workers,"scabs",so their disagreement value is 1 million and the union members can find temporary employment elsewhere,making the unions disagreement value $2million.
​When buying a car from a dealership,to get the best bargain

A)​Allow the dealership to make the first offer
B)Keep a cushion of bargaining space in the quoted price
C)Make a take it or leave it offer
D)​All of the above

Question 57

​Under the non-strategic view of bargaining,the terms of agreement are determined by

A)​The rules of the game
B)The alternatives to agreement
C)The precise form of negotiations
D)​All of the above

Question 58

​Jim is haggling with a car dealer over the sale price of a used car.When he entered the store,it was empty.During the negotiations,a second customers walks in,interested in that particular car,and the storekeeper rejects Jim's offer.This is because

A)​The car dealer's disagreement value decreased
B)The car dealer's disagreement value increased
C)The car dealer's disagreement value did not change
D)​None of the above

Question 59

​Use the following setup for questions
Consider a non-strategic game between a firm and its union.The value to the firm of getting the workers back to work is $5 million.The union's agreement value to get back to work is $5 million.The firm can hire nonunion workers,"scabs",so their disagreement value is 1 million and the union members can find temporary employment elsewhere,making the unions disagreement value $2million.
​The firm would have a better bargaining position if

A)​The firm can easily replace the workers with machinery
B)The workers are a critical part of the production process
C)The workers are highly specialized and would not find employment elsewhere easily
D)​Both A&C

Question 60

​Jim is haggling with a car dealer over the sale price of a used car.Which of the following would determine the amount of surplus Jim extracts from the purchase?

A)​Total difference between the buyer's and seller's valuations of the car
B)The number of customers trying to buy that particular car
C)The number of sellers trying to make Jim a sale
D)​All of the above

Question 61

​If,during the negotiations between the union and the management,a lockout occurs,it would be because

A)​The management is trying to convince the union that it would stick to its strategy
B)The union believes the management's threat
C)All of the above
D)​None of the above

Question 62

​If a union threatens to strike during a slow demand period,it is more likely to

A)​Have its conditions accepted
B)Have its conditions rejected
C)Get laughed at
D)​All of the above

Question 63

​Jim is haggling with a car dealer,along with another customer,over the sale price of a used car.When he entered the store,the storekeeper was already haggling with the other customer.As Jim makes an offer on the car,the other customer leaves the store,and the storekeeper accepts Jim's offer.This is because

A)​The storekeeper's disagreement value decreased
B)The storekeeper's disagreement value increased
C)The storekeeper's disagreement value did not change
D)​None of the above

Question 64

​Jim is haggling with a car dealer,along with another customer,over the sale price of a used car.When he entered the store,the storekeeper was already haggling with the other customer.His bargaining position would improve if

A)​The other customer leaves
B)He receives an offer from a competing car dealer
C)He can make it clear that he will leave if his offer isn't accepted
D)​All of the above

Question 65

​Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.She would be in a strong bargaining position because

A)​Her value for disagreement has increased
B)Her value for disagreement has decreased
C)Her value for disagreement has not changed
D)​Her value for agreement has not changed

Question 66

​John Nash,the mathematician responsible for the Nash equilibrium,also proved that any reasonable bargaining outcome would

A)​Split the gains from trade
B)Allocate the gains from trade to the seller
C)Allocate the gains from trade to the buyer
D)​All of the above

Question 67

​Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,she would

A)​Have a weaker bargaining position
B)Have a stronger bargaining position
C)Be laughed at
D)​All of the above

Question 68

​If,during the negotiations between the union and the management a strike occurs,it would be because

A)​The union is trying to convince the management that it will stick to its strategy
B)The management doesn't believe the union's threat
C)All of the above
D)​None of the above

Question 69

​Jim is haggling with a car dealer over the sale price of a used car.When he entered the store,the storekeeper was already haggling with the other customer.His bargaining position could get worse if

A)​The customer leaves
B)Another customer enters the store,interested in the car
C)He gets an offer from another seller
D)​All of the above

Question 70

​Jim is haggling with a car dealer on the price of a used car.During the bargaining,Jim discovers that the car has a significant number of scratches which he had not noticed before.The total surplus from the sale has

A)​Increased
B)Decreased
C)Was not affected
D)​All of the above

Question 71

​A company that rewards its salespeople based on the number of sales made can expect

A)​Higher sales prices
B)Lower sales prices
C)No sales
D)​All of the above

Question 72

​Jim is haggling with a car dealer on the price of a used car.If the dealer is getting a bonus per sale made,in addition to the commission,Jim is more likely to be able to

A)​Get the car cheap
B)Pay a higher price for the car
C)Walk away from the deal
D)​All of the above

Question 73

​If a union threatens to strike during a peak demand period,it is more likely to

A)​Have its conditions accepted
B)Have its conditions rejected
C)Get laughed at
D)​All of the above

Question 74

​Jim is haggling with a car dealer on the price of a used car.During the bargaining,the storekeeper discovers that the car's stereo is better than he or Jim originally realized.If Jim is a huge music fan,the total surplus available from the sale

A)​Increases
B)Decreases
C)Is not affected
D)​All of the above

Question 75

​Armpit Homunculus
Prescott Pharmaceuticals is facing class action suit over side effects caused by its latest growth supplement.The lawyers representing the class are asking $200 million because they claim Prescott knew about and hid the fact that the supplement caused Armpit Homunculus.Prescott claims it had no foreknowledge of this and can take their chance at trial where they expect a $50 million payment.Just before the trial date,an internal Prescott email is discovered in which Dr.Colbert,D.F.A.is joking about "how hideous the armpits will be on all these giants." How does this affect the likely cost of settling the case?

Question 76

​The best threat is on

A)​You always have to carry out
B)You must always carry out
C)You sometimes have to carry out
D)​You never have to carry out

Question 77

​Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,her raise request is more likely to be

A)​Accepted
B)Rejected
C)Laughed at
D)​All of the above

Question 78

​Jim is haggling with a car dealer on the price of a used car.If the dealer is getting a bonus per sale made,in addition to the commission,the storekeeper's

A)​Disagreement value increases
B)Eagerness to agree increases
C)Disagreement value decreases
D)​Both B&C

Question 79

Sam is responsible for ordering office supplies for the firm gets a bonus if the firm stays well-stocked at all times.The bonus implies he is more likely to

A)​Pay lower prices for the supplies
B)Pay higher prices for the supplies
C)Have more stock outs
D)​Resign from the position

Question 80

​Jill,a bookkeeper just received an attractive offer from an outside firm.Her opportunity cost,of staying in her current position has

A)​Increased
B)Decreased
C)Not changed
D)​All of the above