Which of the Following Is an Example of a Disincentive

question 119

Multiple Choice

Which of the following is an example of a disincentive?

• A) Law enforcement creates a "Mug Shots" section online in order to discourage potential law breakers.
• B) You offer workers a bonus if they sell 100 widgets per month.
• C) A local gym offers a weight loss competition and the winner earns a free trip to Bermuda.
• D) Your professor offers to edit your paper before it's graded if you turn it in early.

Understand the role of concentration ratios and the Herfindahl index in measuring market concentration.

Recognize the implications of economies of scale in market structure.

Understand the concept and calculation of the four-firm concentration ratio in various market structures.

Recognize the significance of the Herfindahl index in measuring market concentration and its implications for competition.