If sellers have more information about the quality of goods than do buyers, then:
A. sellers of better-than-average goods will have difficulty getting their asking price.
B. buyers will never make purchases.
C. buyers always will be exploited.
D. sellers of lower-than-average goods will have difficulty getting their asking price.
Answer: A
You might also like to view...
If an individual is maximizing his or her utility, his or her marginal rate of substitution of leisure hours for consumption will be:
a. equal to one divided by his or her wage rate. b. greater than one divided by his or her wage rate. c. equal to his or her wage rate. d. less than his or her wage rate.
Marginal costs rise if marginal product falls
Indicate whether the statement is true or false
Slope will vary along a curve (as opposed to a straight line).
Answer the following statement true (T) or false (F)
Constant returns to scale occur when the firm's long-run
a. total costs are constant as output increases. b. average total costs are constant as output increases. c. average cost curve is falling as output increases. d. average cost curve is rising as output increases.