Question

Consider the following statements:__________ A. Car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area. B. Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment. C. Firms produce more of a particular DVD when its selling price rises.

Answer 1

All three of them, A, B and C

Step-by-step explanation:

The gas station that offers a lower price provides a discount, which is a positive incentive, so that more customers purchase their gas there.

Banks do not increase security because the negative incentive is too small. The threat of bank robberies is the negative incentive, but since they rarely occur, then banks are not willing to invest in expensive security systems.

An increase in sales price is a positive incentive that will make companies produce more DVDs.