Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), what fraction of used cameras sold will actually be plums (high quality)?
A. 10/25
B. 10/35
C. 25/35
D. None of the cameras sold will be plums.
Answer: B
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a. Have its conditions accepted b. Have its conditions rejected c. Get laughed at d. All of the above
At any quantity, the price given by the supply curve shows the cost of the lowest-cost seller
a. True b. False Indicate whether the statement is true or false
Suppose that Far North Canadian Lumber, Ltd., sells lumber in Canada at a price of $1,000 per 1,000 board feet and exports the same lumber to the United States at a price of $600 per 1,000 board feet. U.S. Lumber, Inc., produces and sells lumber for $700 per 1,000 board feet in the United States. What other condition must be satisfied in order for the U.S. government to impose an antidumping duty on Canadian lumber imports?
a. There must be material injury to a Canadian lumber producer. b. There must be material injury to a U.S. lumber producer. c. There must be material injury to both a U.S. and a Canadian lumber producer. d. All these conditions must be satisfied.
The interest rate is the opportunity cost
A. of investing in Treasury securities. B. of using credit cards. C. of holding money. D. of investing in stocks.