Adverse selection is a situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction
Indicate whether the statement is true or false
TRUE
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Of the following, the best example of oligopoly is
A) wheat farming. B) the restaurant industry. C) the cigarette industry. D) the clothing industry.
Given the quantity theory of money 1/V represents
A) the velocity of money. B) the number of times the average $ changes hands. C) the proportion of nominal income held as a medium of exchange. D) PY.
A monopolist is able to sell 5 units of output at $2.50 per unit and 6 units of output at $3.50 per unit. It will produce and sell the sixth unit if its marginal cost is:
a. $8.90. b. $8.50. c. $8.35. d. $8.00.
If a perfectly competitive firm experiences a permanent increase in demand, profits will become negative in the short run, and in the long run adjustment some firms would exit from the market, causing the supply curve to shift inwards
Indicate whether the statement is true or false