Refer to the scenario above. What is the equilibrium outcome in this case?
A) Both firms will dump their waste into the river.
B) Neither of the firms will dump its waste into the river.
C) Firm 1 will dump its waste into the river, while Firm 2 will not dump its waste.
D) Firm 2 will dump its waste into the river, while Firm 1 will not dump its waste.
A
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Twenty years ago a stove cost $300 and a refrigerator cost $1,500. Today a stove costs $600, while a refrigerator costs $1,800. Which of the following statements is TRUE?
A) The relative price of stoves and refrigerators has not changed. B) The relative price of a refrigerator has increased. C) The relative price of a stove has increased. D) The money price of a refrigerator has fallen.
Refer to Figure 4-1. Kendra's marginal benefit from consuming the second ice cream cone is
A) $6.50 B) $6.00 C) $3.00 D) $2.25
Decision making is a process, what is the first step?
a. Define the decision b. Estimate resources c. Consider alternatives d. Imagine consequences
Adverse selection arises when:
A. the wants of both parties are aligned with one another. B. buyers and sellers have different information about the quality of a good or the riskiness of a situation. C. buyers and sellers with the same information about the quality of a good or the riskiness of a situation seek each other out. D. people behave in a riskier way because they have incomplete information.