A tax on the buyers of smart watches encourages a. sellers to supply a smaller quantity at every price. b. buyers to demand a larger quantity at every price. c. sellers to supply a larger quantity at every price. d. buyers to demand a smaller quantity at every price.

Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will add to the overall costs if they pursue their own self-interests. what does this best illustrate? a. diseconomies of scale b. principal-agent problem c. experience-curveeffects d. information asymmetries