Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. Why were there so many "lemon" kiwifruit in the U.S. market?
What will be an ideal response?
Mature kiwifruit is sweeter but costs more to produce than immature kiwifruit. Consumers cannot tell if a kiwifruit is sweet or sour before they taste it, so they were unwilling to pay a high price for kiwifruit. The relatively low price drove out the more costly to produce, sweeter, kiwifruit from the market.
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The finding that U.S. exports tend to come from labor-intensive industries, while U.S. imports are produced using relatively capital intensive techniques is known as
A) the Leontief paradox. B) the balance of trade enigma. C) the Heckscher-Ohlin paradox. D) the Krugman finding.
A natural monopoly is a market where
a. a single firm has control over a vital natural resource. b. many smaller firms can produce the entire market output at the same per-unit cost as could one large firm. c. a single large firm can produce the entire market output at a lower per-unit cost than a group of smaller firms. d. many smaller firms can produce the entire market output at a lower per-unit cost than could one large firm.
Which of the following is not associated with strikes?
A. Strike duration is generally procyclical. B. If the union makes wage offers, it will likely do so according to a downward-sloping resistance curve. C. Strikes are costly to the union. D. Strikes are costly to the firm. E. The probability of striking is generally procyclical.
Compare and contrast the difference in private and public goods based on the characteristics of “rivalry” and “exclusion.”
Please provide the best answer for the statement.