Who gains in a voluntary trade?
A. Both the buyer and the seller, but the seller usually gains more.
B. Both the buyer and the seller.
C. The buyer only.
D. The seller only.
Answer: B
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Economic growth is defined as equal to the increase in
A) real GDP. B) population. C) the price level. D) the inflation rate. E) employment.
Which of the following statements is true?
A) Optimization in levels is based on behavioral analysis. B) Optimization in differences is based on marginal analysis. C) Optimization in differences is often faster than optimization in levels, as it considers all aspects of the feasible alternatives. D) Optimization in levels is often slower to implement than optimization in differences, as it considers only the aspects in which alternatives differ.
Lipitor, with few substitutes, should have an own-price elasticity of demand that is:
a. Relative elastic b. Relatively inelastic c. Perfectly inelastic d. Perfectly elastic
If long-run average total cost decreases as the quantity of output increases, the firm is experiencing
a. economies of scale. b. diseconomies of scale. c. coordination problems arising from the large size of the firm. d. fixed costs greatly exceeding variable costs.