In common value auctions
a. Every bidder know the value of the object being sold
b. Each bidder makes the same estimate of the value of the good
c. Bidders do not know the estimates of the others
d. The true value of the item differs across bidders
c
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When corporate income taxes are increased on competitive industries, the increase _____
a. will have the largest effect on firms with elastic demands b. will have the largest effect on firms with inelastic demands c. will be evenly distributed between stockholders and customers d. will have zero effect
A country is moderately outward-oriented if there are relatively high import-substitution restrictions
a. True b. False Indicate whether the statement is true or false
If Real GDP is less than Natural Real GDP, then the (actual) unemployment rate is
A) less than the natural unemployment rate. B) equal to the natural unemployment rate. C) greater than the natural unemployment rate. D) less than or greater than the natural unemployment rate, but we cannot determine which one. E) b and d
For a cartel to be successful in increasing economic profits for its members:
A. individual firms must be encouraged to adjust output so as to maximize their own profits at the cartel price. B. entry of new firms must be blocked. C. price must be set equal to marginal cost. D. price must be set equal to average total cost.