When drawn correctly and preferences are consistent, indifference curves do not intersect.
Answer the following statement true (T) or false (F)
True
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A manager is participating in an auction where values or common or correlated and is not 100 percent certain of the value of the item. The manager ________ reduce their bid below their estimated value to ________ the winner's curse.
A) should; avoid B) should; enjoy C) should not; enjoy D) should not; avoid
Firms want to capture consumer surplus
Indicate whether the statement is true or false
If a 10 percent increase in the price of product A brings about a 3 percent increase in the sales of product B, then:
A. products A and B are complementary. B. the cross elasticity of demand between these two products is positive. C. products A and B are substitutes. D. the demand for these products is inelastic.
Distorting taxes always create excess burdens.
Answer the following statement true (T) or false (F)