Refer to the scenario above. Suppose you decide to buy a Toyota Corolla. You value the car for $10,000. You don't know it, but the car dealer values it for $8,500. Which of the following is true in this case?
A) There are no gains from trade.
B) There are gains from trade.
C) There are negative economies of scale.
D) There are positive economies of scale.
B
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Which of the following is an unit excise tax?
A. A tax of 15% B. An admission fee of $2.00 on each ticket purchased C. An ad valorem tax of $3.00 D. An income tax of $3.00
Discuss the method of quantitative easing used by the Federal Reserve during the recession of 2008, including any criticisms of this action
If the unemployment rate is 5 percent (full employment), the United States economy is operating
A. inside the production curve. B. on the production curve. C. outside the production curve.
The demand curve facing an oligopoly firm is kinked because
A. It is most likely that competitors will match price hikes as they practice price leadership. B. It is most likely that rivals will match price cuts but not price increases. C. Its competitors will match only price hikes. D. The demand curve that is most inelastic is the most probable situation facing the company.