An increase in asymmetric information that increases financial frictions will tend to ________
A) increase the moral hazard and adverse selection problems in credit markets
B) decrease financial frictions
C) improve market efficiency
D) decrease the moral hazard problem
A
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If a worker becomes unemployed because of an increase in the minimum wage, that worker is:
What will be an ideal response?
A monopoly sets a price of $50 per unit for an item that has a marginal cost of $10. Assuming profit maximization, the implicit demand elasticity is
A) -0.2. B) -0.8. C) -1.25. D) -5.0.
A firm produced 376 units with 10 workers. When the eleventh worker was hired, the output increased to 398 units. The marginal product of the eleventh worker is:
A) 22 units. B) 37.6 units. C) 36.18 units. D) 398 units.