Do you think that information technologies will someday eliminate asymmetric information problems?
What will be an ideal response?
No. The most advanced conceivable technologies will not enable one to expose intentions or to predict the future. Rapid, low cost dissemination of verifiable information lowers transaction costs and improves the allocation of funds, but there will remain the challenge of minimizing the funding of borrowers whose incompetence and/or malice is concealed rather than revealed by the available information.
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On average, if demand is unknown and costs of underpricing are _______ than the costs of overpricing, then err on the side of_________
a. Smaller; overpricing b. Smaller; underpricing c. Larger; underpricing d. None of the above
According to economic reasoning, you should follow Nike's advice and "Just Do It" when
a. the total benefits are less than the total costs. b. the additional costs are greater than the additional benefits. c. the additional costs are the same as the additional benefits. d. the additional benefits are greater than the additional costs.
What was the balance of trade in 2017?
a. -$808 billion
b. -$552 billion
c. -$449 billion
d. $0 billion
The firm's shutdown point occurs at an output of
A. 40.
B. 45.
C. 50.
D. 55.
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