If transaction costs are high, then it is more likely a firm's demand curve is downward sloping
Indicate whether the statement is true or false
True . Transaction costs increase the costs for consumers to find a new firm. Thus, high transaction costs allow a firm to charge more than others.
You might also like to view...
A demand curve that is horizontal indicates that the commodity
A) has few substitutes. B) must be very cheap. C) has a large number of substitutes. D) is a necessity.
If $1 is worth .8 Canadian dollars, then 1 Canadian dollar is worth:
A. $1.25. B. $1.80. C. $0.20. D. $0.80.
A leftward shift in the demand curve is called:
a. a decrease in demand. b. an increase in demand. c. a decrease in output. d. an increase in income.
Average income for adults still varies widely across gender and racial groups in the United States, which tells us:
A. discrimination causes differences in income across race and gender groups. B. income is correlated with race and gender. C. race and gender differences cause differences in income. D. All of these are true.