The marginal benefit of additional information:
A. is independent of the amount of information that has already been acquired.
B. rises as more information is collected.
C. falls as more information is collected.
D. tends to be lower for expensive items than inexpensive items.
Answer: C
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An increase in the price of poultry would lead to
A. a decrease in quantity demanded of fish and an increase in the demand for poultry. B. a decrease in quantity demanded of poultry and an increase in the demand for fish. C. an increase in quantity demanded of fish and a decrease in the demand for poultry. D. an increase in quantity demanded of poultry and a decrease in the demand for fish.
Consider two goods: peanut butter and jelly. If the price of jelly increases from $2 a jar to $3 per jar and the quantity demanded of peanut butter decreases from 50 jars to 45 jars, what is the cross elasticity of demand? Are the goods substitutes
or complements?
Refer to Figure 12-16. Which panel best represents the perfectly competitive organic produce market's transition to the long run when some firms in the market are earning economic profits?
A) Panel A B) Panel B C) Panel C D) Panel D
What is a "structural" relationship?
A) a relationship that depends on the basic behavior of consumers and firms and remains unchanged over long periods B) any relationship that cannot be anticipated C) a relationship that depends on the size of firm investments in capital such as buildings and other structures D) a relationship between any two variables that is temporary