Used cars sell for much less than new cars because
A) of imperfect competition in the automobile industry.
B) buyers know much more about the quality of used cars than sellers do.
C) sellers know much more about the quality of used cars than buyers do.
D) physical depreciation of used cars is very high.
E) of licensing arrangements by the government.
C
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Often the fee structure for electric companies are based off of the quantities that a customer consumes, and that on average the price of electricity falls as more electricity is consumed. This is an example of what type of price discrimination?
A. First-degree price discrimination. B. Second-degree price discrimination. C. Third-degree price discrimination. D. It is not price discrimination.
All of the following are characteristics of a perfectly competitive market, except one. Which is the exception?
a. a large number of sellers b. a standardized product c. no barriers to entry d. sellers can easily exit the market e. an intensive rivalry among the sellers
When Adam Smith's ten pin workers specialized, they were able to increase output of pins in a day from 200 to 48,000. One reason for the increase in pin output was due to
A. the time saved when workers do not need to shift from one task to another. B. new machinery. C. the bonus they received when they produced more pins. D. the boredom the workers suffered when they stopped making a whole pin and only concentrated on one task such as painting the heads white.
Refer to the graph above. Which of the following would shift the investment demand curve from ID 2 to ID 1 ?
A. Rising real interest rates
B. Increasing business taxes
C. Lower acquisition cost of capital goods
D. Higher expected rates of return on investment