Because of the lack of buyer's information about a perfectly functioning used car:
A. the buyer will pay less than what it's worth because of the chance that it will be a lemon.
B. sellers of perfectly functioning used cars will be more likely to enter the market.
C. the market will eventually become saturated with high quality cars.
D. All of these statements are true.
A. the buyer will pay less than what it's worth because of the chance that it will be a lemon.
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Refer to Figure 4.6, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, what is the market quantity supplied at a price of $30?
A) 200 B) 250 C) 300 D) 350
If producer choice sets are convex and a production plan satisfies the condition that the (marginal) technical rate of substitution is equal (in absolute value) to the ratio of input prices, then the production plan is profit maximizing.
Answer the following statement true (T) or false (F)
Suppose the number of medical school graduates continues to increase over the next decade. Which of the following is true?
a. Physicians' salaries must fall. b. Physicians' salaries must rise. c. Physicians' salaries will fall only if the demand for medical services falls. d. Physicians' salaries will fall if the demand for medical services rises more than the supply of physicians rises. e. Physicians' salaries will rise if the demand for medical services rises more than the supply of physicians rises.
Which of the following is a short-run adjustment?
A. A local bakery hires two additional bakers. B. Six new firms enter the plastics industry. C. The number of farms in the United States declines by 5 percent. D. BMW constructs a new assembly plant in South Carolina.