Which of the following is an example of incomplete information?
a. A seller losing out on profits because the market price rises above the pre-contracted price.
b. An insurer refuses to bear the complete cost of a treatment.
c. An insured car driver driving carelessly on the highway.
d. A new household appliance starts malfunctioning after two weeks.
A
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According to the interest rate effect, as the price level decreases, households and firms' holdings of money ____, interest rates ____, investments ____, and the quantity RGDP demanded ____
a. increases, decrease, increase, decreases b. increases, increase, increase, decreases c. decreases, decrease, increase, increases d. increases, increase, decrease, decreases
At which point in Figure 9-7 would a perfectly competitive firm earn the same profit, or suffer the same loss, by producing rather than by shutting down?
a.
A
b.
B
c.
C
d.
D
e.
F
A simultaneous game is one in which:
A. there is never a winner if players act rationally. B. players act together to achieve a common goal. C. players take turns making moves and/or decisions. D. players make their moves and/or decisions at the same time.
Figure 11.1Figure 11.1 depicts demand and costs for a monopolistically competitive firm. At the profit maximizing output level:
A. this firm is earning economic profits equal to zero. B. this firm is earning economic profits equal to Q1(P1 - AC1). C. this firm is earning economic profits equal to P1(Q1 - AC1). D. this firm is in long-run equilibrium.