A third party is a person, or persons, who:
a. consume goods produced from at least two intermediate inputs.
b. avoids the transactions of the two principal parties.
c. takes risks to avoid externalities.
d. internalizes the costs of market failure.
e. is imposed upon by the activity of others.
e
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Which of the following is true?
i. When the world price of a good is lower than the price that balances domestic supply and demand, a country gains from exporting the good. ii. Compared to a no-trade situation, in a market with imports, consumer surplus is larger. iii. Quotas raise the domestic price of imported goods. A) only i B) only ii C) only iii D) i and ii E) ii and iii
If the game is repeated indefinitely, and the vendors adopt a trigger strategy such that they would start charging the low price only if the other vendor charged a low price last time, what would be the Nash equilibrium?
a. Both the vendors price high b. Both the vendors price low c. Vendor A prices high, vendor B prices low d. Vendor B prices high, vendor A prices low
Price decreases always increase economic efficiency.
Answer the following statement true (T) or false (F)
A measure of the responsiveness of quantity supplied to changes in price is known as _____
a. cross-price elasticity b. price elasticity of demand c. price elasticity of supply d. income elasticity e. point elasticity