Posted: March 23rd, 2017

Distinguish between economies of scale and economies of scope. Why do some firms produce multiple product lines, while others produce only one?Define asymmetric information. Distinguish between hidden characteristics and hidden actions. Which type of asymmetric information contributes to the principal-agent problem? Describe the functions of signaling and of screening in labor markets.

Distinguish between economies of scale and economies of scope. Why do some firms produce multiple product lines, while others produce only one?Define asymmetric information. Distinguish between hidden characteristics and hidden actions. Which type of asymmetric information contributes to the principal-agent problem? Describe the functions of signaling and of screening in labor markets.