Without warranties, used car buyers can assume that all used cars are "lemons" because of
A) moral hazard.
B) moral dilemma.
C) adverse selection.
D) adverse reaction.
C
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The marginal rate of technical substitution is
A) the rate at which a firm is able to institute positive technological changes to its production process. B) the rate at which a firm is able to increase its output by replacing labor with technology. C) the rate at which a firm is able to substitute one input for another, while keeping the level of output constant. D) the rate at which a firm is able to substitute one input for another, while keeping total cost constant.
Which of the following is most likely to have an impact on the growth of productivity?
A) a decrease in the price level B) a decrease in real money balances C) an increase in the labor supply D) improvements in worker training
Dell computers has increased production efficiency by
A) producing output with fewer inputs. B) expanding the amount of inputs used. C) outsourcing production. D) relying on decreasing returns to scale.
Collusion
a. is exactly the same thing as competition. b. involves cooperative actions by sellers at the expense of buyers. c. requires competitive actions by sellers to win customers from rival firms. d. can only be achieved in price-taker markets.