A good that has qualities that are easy for a consumer to assess in advance of a purchase is called
A. a credence good.
B. a persuasive good.
C. an experience good.
D. a search good.
Answer: D
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Which of the following is the correct way to describe equilibrium in a market?
A) At equilibrium, market forces no longer apply. B) At equilibrium, quantity demanded equals quantity supplied. C) At equilibrium, demand equals supply. D) At equilibrium, scarcity is eliminated.
The following is a Cobb-Douglas production function: Q = 1.75K0.5•L0.5 . What is correct here?
a. A one-percent change in L will cause Q to change by one percent b. A one-percent change in K will cause Q to change by two percent c. This production function displays increasing returns to scale d. This production function displays constant returns to scale e. This production function displays decreasing returns to scale
Given the cost function C(Y) = 6Y2, what is the marginal cost?
A. 12Y B. 6Y C. Y2 D. 3Y
There would be a unique product for which there are few close substitutes under which market model?
A. Oligopoly B. Pure competition C. Monopolistic competition D. Pure monopoly