An implicit cost:
a. is an opportunity cost
b. is an out-of-pocket expense.
c. does not require an outlay of money.
d. is characterized by both (a) and (c)
d
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A merger will be challenged by the FTC in a market where the Herfindahl-Hirschman Index (HHI) is ________, and the merger would increase it to ________
A) 2,900; 3,100. B) 1,700; 1,760 C) 800; 950 D) 2,000; 2,040
If the value of a cable TV franchise is uncertain, too much may be bid for the franchise. This is an example of
a. moral hazard b. an authority relation c. the winner's curse d. the principal-agent problem e. adverse selection
Monetarists argue that the long-run Phillips curve is negatively sloped
a. True b. False Indicate whether the statement is true or false
Evaluate the following: "Employers who discriminate against women will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity)."