Costs to the firm arising from reaching agreements on input prices with suppliers and then ensuring that terms of agreements are fulfilled, are called
A) negotiation costs.
B) agency costs.
C) transactions costs.
D) implicit costs.
C
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All of the following encourage increases in technological progress EXCEPT
A) closed economies. B) larger markets through free trade. C) the possibility of monopoly profits. D) the ability to patent a new invention.
What is a convertible currency?
What will be an ideal response?
In the tourist-trap model, a consumer might pay more than marginal cost for a good sold in a competitive market if the cost of possibly finding the good cheaper is more than the markup over marginal cost
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. If one city has a higher CPI than another city, the city with the higher CPI must have a higher cost of living. 2. COLA is a form of indexation. 3. Only wages or income can be indexed to the CPI. 4. Indexation is a good means of reducing inflation. 5. The value or purchasing power of the dollar can be obtained by dividing $1 by the CPI.