Identify some of the possible transactions costs involved in an exchange of a used car between two individuals
Transaction costs include the costs incurred by the seller and the buyer of the used car to locate each other. The transportation costs involved in meeting each other as well as the time involved in bargaining for a price is also a part of the transaction cost of this deal. If they do not speak the same language the services of an interpreter will add to the transaction cost.
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In Figure 3-7 above, the multiplier effect does NOT explain
A) the increase in equilibrium income. B) the increase in induced saving. C) the increase in AP. D) all of the above.
Distinguish between macroeconomics and microeconomics
What will be an ideal response?
Over a twenty-five year period, about half of the merger acquisitions are split up
Indicate whether the statement is true or false
A competitive firm currently produces and sells 500 units of output. Its total revenue is $6,000; the marginal cost of producing the 500th unit of output is $14.50; and the average total cost of producing the 500th unit of output is $9.50 . Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?