When a seller knows more about the condition of a used car than the buyer does, the information is said to be asymmetric
a. True
b. False
A
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The above figures show the market for gasoline. Which figure(s) shows the effect of a freezing cold winter which drives up the price of home heating oil (a substitute in production for gasoline because each is made from crude oil)?
A) Figure B B) Figure C C) Figure D D) Figures B and C
Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A) 10 thousand hammers B) 8 thousand wrenches C) 13 thousand hammers D) 0 wrenches
In the model of monopolistic competition, an increase in industry output will ________ market shares and ________ profits of producers of higher-priced goods and will ________ market shares and ________ profits of producers of lower-priced goods
A) reduce; reduce; increase; increase B) increase; increase; reduce; reduce C) increase; reduce; increase; reduce D) reduce; increase; reduce; increase E) reduce; increase; increase; reduce
Which of the following is most likely to be a fixed cost for a business?
a. expenditures on low-skill labor. b. shipping charges for the delivery of products. c. managerial salaries. d. property taxes on the firm's buildings.