When the parties to a deal have access to different information:
A. markets will be efficient.
B. parties will voluntarily share information truthfully in order to achieve efficiency.
C. markets may fail to exist in such cases.
D. parties will blindly trust one another.
C. markets may fail to exist in such cases.
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In case of a decrease in product prices:
A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the price effect dominates the quantity effect, total revenue increases. D) when the quantity effect dominates the price effect, total revenue increases.
Good Patties is a chain fast-food hamburger restaurant that wants to expand into a foreign market. The managers of Good Patties are most concerned about the financial commitment and desire to keep the potential cost as low as possible. Which of the following entry methods is most likely to address the managers' financial concerns?
A) acquiring a foreign firm through a merger B) establishing a local office/restaurants managed by one of Good Patties' managers C) franchising D) independent entry
A right-to-work state is one in which
A) unions are illegal. B) there is guaranteed employment for all citizens. C) the union shop is prohibited. D) the closed shop is permitted.
Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts less than the demand curve. As a result
A) both the equilibrium price and quantity of MP3 players will decrease. B) both the equilibrium price and quantity of MP3 players will increase. C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease. D) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.