Asymmetric information exists in the market for used cars because:
A. sellers have better information concerning the quality of used cars than buyers.
B. buyers have better information concerning the quality of used cars than sellers.
C. buyers and sellers have equal information concerning the quality of used cars.
D. it is impossible for buyers or sellers to determine the quality of used cars.
Answer: A
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Daphne actually values her home at $250,000 but claims she values the home at $300,000. In an eminent domain situation, the government would pay Daphne ________ for her home
A) $250,000 B) $275,000 C) $300,000 D) the fair market value
Some competitive firms are willing to operate at a loss, in the short run, because:
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A. movement up and to the left along the supply curve. B. movement down and to the right along the supply curve. C. movement up and to the right along the supply curve. D. movement down and to the left along the supply curve.
In Figure 35.1, what is the opportunity cost of motorcycles in Japan?
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