Multiple estimates for major expenditures, warranties, and lemon laws all reduce the possible negative consequences of ________
a. bounded rationality
b. winner's curse
c. optimal search
d. asymmetric information
d
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Workers often have ________ contracts and so their wages are ________
A) short-term; sticky B) short-term; flexible C) long-term; flexible D) long-term; sticky
The figure above shows the demand curve, marginal revenue curve, and marginal cost curve
The amount of consumer surplus when the market has a monopoly producer is ________ and the amount of consumer surplus when the market is perfectly competitive is ________. A) abf; ace B) abf; bcd C) ace; bcd D) ace; abf E) bcd; ace
Suppose the desired reserve ratio is 10 percent. If Urban Bank has total deposits of $1,000 and total assets of $10,000, the amount of desired reserves is
A) $100. B) $900. C) $1,000. D) $9,000. E) $1,100.
The total revenue test using the price elasticity of demand
A) explains why monopolies will only operate on the elastic portion of their demand curve. B) explains why monopolies will only operate on the inelastic portion of their demand curves. C) demonstrates why a monopoly can earn an economic profit in the long run. D) determines whether a monopoly can perfectly price discriminate or not. E) cannot be used for a price discriminating monopoly.