Suppose that 20 percent of the firms selling good X charge the low price. If the remaining 80 percent of firms charge $80 per unit and the expected benefit of an additional search is $5, then the lowest price in the market for good X is:

A. $55.
B. $0.
C. $5.
D. $73.75.


Answer: A

Economics

You might also like to view...

Opening trade between nations enables each nation's consumption possibilities to go beyond the confines of its own production possibilities curve

a. True b. False Indicate whether the statement is true or false

Economics

To calculate market demand, we

A. Add the quantities demanded for each individual demand schedule horizontally. B. Find the difference between the quantity demanded and the quantity supplied at each price. C. Add the quantities demanded for each individual demand schedule vertically. D. Find the average quantity demanded at each price.

Economics

________: an artificial currency accounting entities to supplement reserve assets of the International Monetary Fund

Fill in the blank(s) with correct word

Economics

What are the categories of risk that police departments face?

What will be an ideal response?

Economics