Over the next few years, several newly constructed office blocks will become available at the World Trade Center site. As well, economists expect the New York economy will continue to exhibit modest growth
What is the expected outcome for the office space market in downtown Manhattan? A) Unambiguously higher equilibrium rental rates and quantity
B) Unambiguously lower equilibrium rental rates and quantity
C) Unambiguously higher rental rates, and equilibrium quantity could be higher or lower
D) Unambiguously higher equilibrium quantity, and equilibrium rental rates could be higher or lower
D
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The prisoners' dilemma shows that the players' dominant strategies often lead them to less than optimal outcomes. Is there any way in which this will not be the case?
What will be an ideal response?
Perfect price discrimination will lead a firm to produce up to the point where price equals marginal cost, the efficient level of output
Indicate whether the statement is true or false
Which of the following is TRUE about firms organized along functional lines?
a. In functional organizations workers develop functional expertise b. Workers find it difficult to share information within their division c. They inhibit the exploitation of economies of scale d. All of the above
One way to overcome an adverse selection problem when buying a used car is to hire an independent mechanic to inspect the car before making a purchase
a. True b. False Indicate whether the statement is true or false