The potential for asymmetric information to bring about a general decline in product quality in an industry is known as the ________ problem
A) moral hazard
B) liability
C) capture
D) lemons
D
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Why would an economist argue that tuition is not the largest cost of attending a state university?
What will be an ideal response?
The arguments of Kessel and Alchien (1959) on the terms of trade and the question of "who paid for the Civil War (1861–1865)" conclude that 40 percent of the war's burden fell on
(a) those who exported manufactures. (b) those who purchased imports. (c) farmers alone. (d) the economy as a whole.
The sales of shoes that include shoelaces is a tie-in sale that most likely
A) greatly increases the shoe producer's profit. B) increases transactions costs. C) increases efficiency. D) None of the above.
A monopolistic competitor finds its profit-maximizing rate of output by
A) equating the marginal revenue from advertising with the marginal revenue from selling the good. B) setting average revenue equal to average total cost. C) equating marginal revenue and marginal cost. D) equating price and marginal revenue.