How can a warranty at the seller's expense signal that a product is of high quality?
What will be an ideal response?
If the product is of low quality, the warranty would be very costly to the seller since a low-quality product would need more repairs than a high-quality product.
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In the above figure, if the price of good A falls from P0 to P1 and the demand for good B increases from D0 to D1, then goods A and B
A) are substitute goods. B) are inferior goods. C) will have a negative cross elasticity of demand. D) are both price elastic but not perfectly price elastic.
There is a
a. short-run tradeoff between inflation and unemployment. b. short-run tradeoff between an increase in the money supply and inflation. c. long-run tradeoff between inflation and unemployment. d. long-run tradeoff between an increase in the money supply and inflation.
Society will produce ________ if price and marginal cost are equated for all firms.
A. the efficient mix of output B. the minimum output C. the maximum output D. no output
The Cournot model is based on two firms that produce identical products and collude to set prices.
Answer the following statement true (T) or false (F)