For a competitive market,
a. a seller can always increase her profit by raising the price of her product.
b. if a seller charges more than the going price, buyers will go elsewhere to make their purchases.
c. a seller often charges less than the going price to increase sales and profit.
d. a single buyer can influence the price of the product but only when purchasing from several sellers in a short period of time.
b
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Bayesian updating in a separating equilibrium implies the initially uninformed player will fully know what type he is playing when he has to make his move.
Answer the following statement true (T) or false (F)
The subject of economics is primarily the study of:
a. the government decision-making process. b. how to operate a business successfully. c. decision-making because of the problem of scarcity. d. how to make money in the stock market.
Suppose Ariana deposits $75,000 in her bank. If the reserve ratio is 20 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks.
A. $15,000 B. $375,000 C. $750,000 D. $1,500,000
Whether an externality is positive or negative, it is always
A. evaluated by the impact on the third party. B. evaluated by the government. C. judged by the profitability of the firm producing the product. D. evaluated by the Supreme Court of the United States.