The lemons problem is a situation of
A) perfect competition.
B) asymmetric information.
C) creative response.
D) a natural monopoly.
B
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Refer to the graphs shown. The curve that best illustrates the law of supply is:
A. I. B. II. C. III. D. IV.
Lucinda is a farm owner who believes the market price for her crops is insufficient to cover her expenses and make a worthwhile profit. Which government action on farm goods would Lucinda most likely support?
a. price decreases b. price ceilings c. price floors d. price maximums
Which of the following is NOT an asset of commercial banks?
A. home mortgages B. business loans C. savings deposits D. consumer loans
Assume that labor is the only variable input and that the payment made to labor is denoted as W. The marginal product of labor can be stated as
A. TC/W. B. W/MC. C. (W) × (MC). D. MC/W.