Which of the following reduces the effects of asymmetric information?
A) repeat purchases
B) warranties
C) building a reputation
D) All of the above.
D
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Refer to the figure above. If the capital stock is fixed at $300, what is the consumption in the economy?
A) $3,000 B) $4,000 C) $2,000 D) $5,000
The average cost curve shows the total cost divided by quantity produced for various levels of output.
Answer the following statement true (T) or false (F)
If price is less than the average variable cost, firms that seek to maximize profit should shut down
a. True b. False Indicate whether the statement is true or false
To understand most of today's economic activity in the U.S. economy, we should look at which of the following models?
a. perfect competition and pure monopoly b. perfect competition and oligopoly c. oligopoly and monopolistic competition d. monopolistic competition and monopoly