One way the "lemons problem" in the used-car market can be mitigated is by
a. raising the price of used cars.
b. hiring auto experts to sell used cars.
c. requiring sellers to guarantee trouble-free cars.
d. allowing owners to trade in their own cars when they purchase a used car.
c
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If a merger allows managers to reduce duplicate operations, the merger ________.
A) created synergies B) eliminated the hold-up problem C) created technological interdependencies D) created managerial diseconomies
To have an ideal voting system in place, if a group is voting on option X versus option Y, this decision should not depend on any information or preference about another unconnected option, Z. In other words, which of the following criteria must be present in the voting system?
A. Unanimity B. No dictator C. Transitivity D. Independence of irrelevant alternatives
Exhibit 8-2 Consumption function
As shown in Exhibit 8-2, the 450 line represents:
A. autonomous consumption. B. real consumption spending. C. real disposable income. D. all points where real consumption equals real disposable income.
Put the following products in order from lowest to highest based on their cross-price elasticity of demand with peanut butter: bread, bologna, floppy disks. Justify your answer.
What will be an ideal response?