A possible market solution that a reputable firm can engage in when faced with the lemons problem is
A) to offer a warranty.
B) to engage in externalities.
C) to create asymmetric information.
D) to use average cost pricing.
A
You might also like to view...
An optimizing consumer has to choose between two goods–Good A priced at PA and Good B priced at PB
Given that MBA is the marginal benefit from consuming Good A and MBB is the marginal benefit from consuming Good B, the consumer's well-being will be maximized at the point where: A) MBA = MBB. B) MBA/PB=MBB/PA. C) MBA/PA = MBB/PB. D) MBA = MBB/PB.
Refer to Table 10-7. Suppose Antonio has $10 to spend and the price of beer = $2 per glass and the price of pizza = $2 per slice. How many of each good will he consume when he maximizes his utility?
A) 2 glasses of beer, 3 slices of pizza B) 3 glasses of beer, 2 slices of pizza C) 4 glasses of beer, 5 slices of pizza D) 2 glasses of beer, 1 slice of pizza
Thrift institutions include
A) banks, mutual funds, and insurance companies. B) savings and loan associations, mutual savings banks, and credit unions. C) finance companies, mutual funds, and money market funds. D) pension funds, mutual funds, and banks.
Which of these would NOT be considered a middleman in a market?
A) a produce wholesaler B) an apple farmer C) a smartphone retailer D) a fruit distributor