All food bought in the United States has an ingredient list on the packaging. This is an example of:
A. building a reputation.
B. screening.
C. requiring the more informed party to reveal missing information.
D. signaling.
Answer: C
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Which of the following is most likely to occur if a cartel does not find an acceptable way to allocate sales among its members?
A) Output will decrease. B) Prices will rise. C) Selling costs will increase. D) The marginal costs of individual members will rise above their marginal revenue.
A characteristic of the long run that is not available in the short run is that a firm is free to vary its output
Indicate whether the statement is true or false
There is clear evidence that the Civil War (1861–1865) aided industrialization in the U.S
Indicate whether the statement is true or false
Suppose a perfectly competitive increasing-cost industry is in long-run equilibrium when market demand suddenly decreases. What happens to the industry in the long run?
a. It experiences no change from the original equilibrium b. It experiences a higher equilibrium price and produces less output c. It experiences a lower equilibrium price and produces less output d. It experiences the same equilibrium price but produces more output e. It experiences the same equilibrium price but produces less output