Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. California kiwifruit growers had an asymmetric information problem because potential buyers:
A. do not know how much kiwifruit they will need.
B. could not tell what the price of the kiwifruit will be.
C. could not tell if a kiwifruit was sweet or sour before tasting it.
D. All of these
Answer: C
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If a bond dealer sells a government bond to the Fed for $100,000, and the reserve ratio is 10 percent, then the bank that receives a $100,000 deposit from the dealer can expand its loans by ________,
and the money supply can increase by as much as ________. A) $80,000; $800,000 B) $10,000; $100,000 C) $90,000; $1,000,000 D) $90,000; $900,000
The case study on Software Development, Inc. (SDI) reviews the introduction of thirty-eight new or revised software packages for the costs of defects. Do an analysis of Table 23.2. If you look at the software introductions with more than fifty defects and those with fewer than twenty-five defects, what general conclusions can you come to concerning the product costs, training costs, prevention costs, and maintenance/service costs of SDI?
What will be an ideal response?
The less sensitive buyers are to a change in price, the
A) greater a change in price must be to induce a certain change in quantity demanded. B) smaller is the price elasticity of demand. C) greater the price elasticity of demand. D) closer the price elasticity of demand is to one.
Refer to the scenario above. If Aqua Inc charges a price of $70 for each unit of Good A while Blu Corp . charges a price of $50, Blu Corp . will face a demand of ________ units
A) 1,000 B) 1,500 C) 2,000 D) 3,000