Figure 14.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. If buyers believe that all of used digital cameras in the market are lemons (low quality), what number of used digital cameras sold will actually be lemons?
A. 50
B. 60
C. 110
D. 150
Answer: B
Economics
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Which phrase would be most characteristic of pure monopoly?
A. close substitutes B. efficient advertiser C. single seller D. price taker
Economics
Average revenue for a perfectly competitive firm is equal to
a. price times output b. marginal revenue c. total revenue/marginal revenue d. output/total revenue e. zero
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Robert must always have sugar in his coffee. For Robert, the cross price elasticity of demand for coffee and sugar is
A. equal to 0. B. negative. C. positive. D. impossible to determine without more information.
Economics
In a perfectly competitive market the term "price taker" applies to
A) sellers and buyers. B) sellers but not buyers. C) buyers but not sellers. D) only the smallest sellers and buyers.
Economics