Which of the following is an example of a transaction that is made even though complete information is not possible?
A. Joe buys a puppy in hopes that the puppy will be his hiking companion for the next 20 years.
B. Alex buys house insurance and has never filed a claim.
C. Mike saves his money by putting it in a mutual fund.
D. All of these are examples of transactions that must be made with incomplete information.
D. All of these are examples of transactions that must be made with incomplete information.
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Of the $3 per pizza tax illustrated in the above figure, the
A) consumers pay $2 of the $3 per pizza tax. B) sellers pay $1 of the $3 per pizza tax. C) government collects $120 thousand in revenue from the pizza tax. D) All of the above answers are correct.
A scarce resource
A. is always very expensive. B. is hard to find. C. is not something managers need to worry about. D. has multiple uses.
Will a profit-maximizing monopolist who is not subject to government regulation produce a quantity where the MR < 0?
What will be an ideal response?
Why are externalities associated with common property rather than private property?
What will be an ideal response?