transaction costs
What will be an ideal response?
the cost of acquiring an input over and above the amount paid to the input supplier
includes : search cost, negotiation costs, other investments or expenditures
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Refer to Table 9-12. Which country has a comparative advantage in producing belts?
A) Estonia B) Morocco C) both countries D) neither country
Assuming a reserve ratio of 10 percent, if a bank sells $100,000 in securities how much can the bank loan out?
A) $90,000 B) $100,000 C) $110,000 D) $10,000
Ask your grandparents about their first love and they would probably remember it well. Ask about the second, and it would probably draw a blank. Think in terms of utility analysis and their responses come as no surprise because what they remember or don't remember, even about love, reflects the
a. same idea that is associated with the water and diamond paradox b. law of maximizing utility c. law of diminishing marginal utility d. idea that utility is very durable over time e. fact that total utility must be declining
The development of market power by a firm is considered to be a market failure because firms with market power will
A. Produce more and charge a lower price than what would be socially optimal. B. Not respond to consumer demand. C. Tend to ignore external costs. D. Produce less and charge a higher price than what would be socially optimal.