eBay has a seller reputation system to provide
A) consumers with a signal concerning seller quality.
B) sellers a chance to signal other sellers concerning their quality.
C) a reduction in monopoly power.
D) improvements in investor relations.
A
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The principal of optimization at the margin states that:
A) moving toward the optimal alternative makes the decision maker worse off, and moving away from it, makes the decision maker better off. B) an optimal alternative has the lowest indirect costs in comparison to other feasible alternatives. C) an optimal alternative has the highest net benefits in comparison to other feasible alternatives. D) moving toward the optimal alternative makes the decision maker better off, and moving away from it makes him worse off. Assume that there are five apartments located at different distances from an individual's place of work: very close, close, far, very far, and extremely far. The individual makes his choice by studying the change in costs as he moves farther from his place of work. She has to choose between renting one of the five apartments. The movement from apartment Very Close to Close has a marginal cost of -$60, a movement from apartment Close to Far has a marginal cost of -$40, a movement from apartment Far to Very Far has a marginal cost of -$10, and a movement from apartment Very Far to Extremely Far has a marginal cost of $20.
The figure above shows the labor market in a region. For a minimum wage to change the wage rate and amount of employment, it must be
A) left to the forces of supply and demand. B) set above $6 an hour. C) set equal to $6 an hour. D) set below $6 an hour. E) set at $12 per hour.
Economic theory states that the optimal depletion rate will
a. Imply the extraction of all of a resource now as long as interest rates are positive b. Increase as the discount rate is raised c. Decrease as the discount rate is raised d. Always ignore benefits to future generations e. Always create excessive pollution
Consumers benefit from monopolistically competitive markets because:
A. they only have one good from which to choose. B. in this type of market, producers supply goods in a variety of locations or with a variety of characteristics. C. in this type of market, goods are sold at a price equal to the marginal cost of production. D. goods are sold at a price equal to marginal revenue.