Why do used goods of different qualities often sell for the same price, while used goods of different sizes sell for different prices?
What will be an ideal response?
It is easier to determine the size of a good than it is to determine the good's quality. If size is a product attribute then it can easily be incorporated into the price of the good since both buyer and seller can agree on the size.
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A horizontal merger
A) results in a trust (for example, the Standard Oil Company). B) is a merger between firms in the same industry. C) is a merger between firms at different stages of production of a good. D) was illegal in the United States until the Federal Trade Commission Act was passed by Congress in 1914.
Which government program would be considered an "entitlement" program?
A) national defense B) subsidies for mass transportation C) law enforcement in major U.S. cities D) Social Security
Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The amount of the tax revenue paid by the seller is
A. $600. B. $300. C. $2100. D. $900.
In Figure 1.5, at which of the following points would the opportunity cost of producing more doughnuts be greatest?
A. C. B. F. C. A. D. E.