Jim used to be very careful with his car. However, once he bought full auto insurance on it, he stopped turning on his alarm or even locking it when parking it. This is an example of moral hazard.
Answer the following statement true (T) or false (F)
True
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Most consumers in stores use marginal analysis to make their buying decisions
a. True b. False Indicate whether the statement is true or false
Because natural monopolies have a declining average cost curve, regulating natural monopolies by setting price equal to marginal cost would
a. cause the monopolist to operate at a loss. b. result in a less than optimal total surplus. c. maximize producer surplus. d. result in higher profits for the monopoly.
Product differentiation in a monopolistically competitive market always entails more costs than benefits.
Indicate whether the statement is true or false.
What determines the economic rent for land? Explain from a supply and demand perspective
What will be an ideal response?