When a party to a transaction lacks relevant information:
A. they always make the deal blindly.
B. they will not make the deal without complete information.
C. they sometimes seek out information in ways that are not obvious.
D. other parties will voluntarily share this information truthfully.
Answer: C
You might also like to view...
The most anyone is willing to pay for another purse is $30. Currently the price of a purse is $40, and the cost of producing another purse is $50. The marginal benefit of a purse is
A) $50. B) $40. C) $30. D) an amount not given in the answers above.
The demand for a factor of production depends on the:
a. supply of the factor. b. supply of other factors of production. c. demand for other factors of production. d. demand for the products that it helps to produce.
Since marginal revenue is less than price for a monopolist, a monopolist maximizes profits by equating marginal revenue and marginal cost, not price and marginal cost.
Answer the following statement true (T) or false (F)
Which of the following would not be expected to occur in a purely competitive market in long- run equilibrium?
A. Consumer and producer surplus will be minimized. B. P = MC = lowest ATC. C. The maximum willingness to pay for the last unit equals the minimum acceptable price for that unit. D. We would expect all of these to occur in the long run in a purely competitive market.