In markets with imperfect information:
A. buyers and sellers will use resources to acquire information before making decisions.
B. buyers will use resources to acquire information before making a decision, but sellers do not need to acquire additional information before making a decision.
C. sellers will use resources to acquire information before making a decision, but buyers do not need to acquire additional information before making a decision.
D. neither buyers nor sellers will be able to acquire information in order to make decisions.
Answer: A
You might also like to view...
According to the textbook, the real mean income of the top 5 percent of families increased by ________ percent from 1980 to 2016.
A. 13 B. 75 C. 55 D. 10
The classical school of thought believed that ______.
a. Say’s law was incorrect b. Keynes’s macroeconomic model was correct c. an economy can experience prolonged unemployment d. wages and prices adjust quickly to changes in supply and demand
A price equal to the free market equilibrium price is efficient because the willingness to pay by someone to consume an additional unit ________ the marginal cost to someone for producing that unit.
A. exceeds B. is less than C. equals D. None of these; efficiency is defined in terms of natural resources, not market equilibrium.
In general, the quantity that maximizes revenue for the monopolist
A) is greater than the quantity that maximizes profit. B) is less than the quantity that maximizes profit. C) is the same as the quantity that maximizes profit. D) is illegal according to anti-trust statutes.