Hiring a sports celebrity to advertise a car dealership is a way of
A. screening those who aren’t willing to pay as much for a car.
B. statistically discriminates potential buyers who like sports.
C. signaling the quality of the cars because it is costly to hire that celebrity.
D. a waste of the dealership’s money because celebrities aren’t car experts.
C. signaling the quality of the cars because it is costly to hire that celebrity.
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In a market with only one firm (a pure monopoly), the Herfindahl-Hirschman Index (HHI) would equal 10,000
a. True b. False Indicate whether the statement is true or false
In a market system, the costs associated with exchanging goods are known as
A) voluntary costs. B) signaling costs. C) implicit costs. D) transaction costs.
There are four structural components to a perfectly competitive market. Which one of the four components is the most important to market operation and why?
What will be an ideal response?
Welfare payments are an example of
A. a tax. B. interest payments. C. wages. D. transfer payments.