What effect on the price of hiring a lawyer to draw up a will would the opportunity-cost theory predict as a consequence of legislation requiring the use of a lawyer in all real estate transactions?
A) A higher price as the market becomes flooded with lawyers.
B) A higher price as lawyers find it costs them more to draw up wills
C) No effect because prices are determined by demand, not by cost.
D) A lower price as the market becomes flooded with lawyers
E) A lower price as lawyers find they can now obtain their desired income level with lower fees
B
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Suppose the extra cost for a company to advertize for one extra day each week on a local TV station is $1,500. Then, the company should advertize on that additional day if it can generate total revenue of $1,500 each week
Indicate whether the statement is true or false
Having a competitive advantage emanates from
a. Increased price b. Decreased cost c. One or both of the above d. None of the above
What assumptions are necessary to argue that the quantity equation implies that increases in the money supply lead to proportional changes in the price level?
The potential total output combinations of any two goods for an economy, given the available factors of production and the available production technology that firms use to turn their inputs into outputs, is shown by a ______.
a. factor market analysis b. simple circular flow model c. production possibilities curve d. volatility coefficient