The costs of the actual bargaining process are called
A) search costs.
B) collectivization costs.
C) negotiation costs.
D) monitoring and enforcement costs.
C
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Which of the following may yield economies of team production for Jitters Coffee Company, Inc?
A) dividing the process of packaging and shipping coffee into several specialized tasks, each performed by different people B) expanding into a larger coffee packaging plant C) expanding into the packaging and sale of tea and powdered chocolate D) all of the above
When someone's willingness to pay is the same as the actual price paid for an item:
A. the individual's surplus is zero. B. the individual will not purchase the item. C. surplus cannot be maximized. D. All of these are true.
In an increasing-cost industry, the entry of new firms
a. decreases equilibrium price b. increases average cost at each level of output c. shifts the industry demand curve to the left d. increases economic profits in the industry e. shifts the long-run industry supply curve to the right
The longer the time period considered, the more the elasticity of supply tends to _______.
a. decrease b. remain constant c. increase d. converge to zero