Relative to a market with perfect information, in a market with imperfect information:
A. some goods will be sold in small quantities or not at all.
B. more than the equilibrium quantity of goods will be sold.
C. the equilibrium quantity will be sold, but at a price higher than the equilibrium price.
D. the equilibrium quantity will be sold for the equilibrium price.
Answer: A
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If the four-firm concentration ratio for the market for pizza is 28 percent, then this industry is best characterized as
A) a monopoly. B) monopolistic competition. C) an oligopoly. D) perfect competition. E) oligopolistic competition.
Negative externalities arising from the production of a good
A. cause an increase in the demand for the good. B. cause a decrease in the demand for the good. C. impose costs on third parties. D. bring private costs into equality with social costs.
Why does a small difference in the economic growth rate lead to big differences over time?
What will be an ideal response?
The following factors help explain the instability of investment, except:
A. Business expectations can quickly change for unpredictable reasons B. Innovations in the economy occur quite irregularly C. Profits of firms are highly variable from one period to the next D. Purchases of capital goods are usually nondiscretionary and cannot be postponed