In the case where cigarette firms conceal information about the negative externalities associated with cigarette smoking, the market is said to be characterized by
a. asymmetric information
b. moral hazard
c. social cost
d. government failure
e. greed
A
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"Market clearing" refers to the case where
A) the purchase and sale plans of buyers and sellers are fully coordinated. B) quantity demanded equals quantity supplied. C) there is neither a shortage nor surplus of a good. D) all of the above.
Answer the following statements true (T) or false (F)
1. In the long run, under conditions of perfect competition, economic profits are eventually eliminated. 2. If the entry of new firms substantially raises demand for resources, two forces tend to eliminate economic profit in the long run: upward pressure on cost and downward pressure on price. 3. The more that firms advertise, the closer they get to perfect competition. 4. The lowest possible ATC curve is attained at the optimal scale of output. 5. If price equals marginal cost at the long-run equilibrium, this means that economic efficiency is being achieved.
Should there be an official definition of a depression? If so, how should it be defined?
What will be an ideal response?
In April 2010 the market share of the top six U.S. makers of cars and light trucks were General Motors (18.7%), Ford (17.0%), Toyota (16.0%), Honda (11.6%), Chrysler (9.7%), Nissan (6.5%) and other companies (21.5%). What would the concentration ratio be for the motor vehicle industry?
A. 35.7 B. 63.3 C. 78.5 D. 100