The optimal bidding strategy for an oral auction is
a. To shade your bid below your true value and drop out well before it is reached
b. To shade your bid below your true value and drop out just when the shaded amount is reached
c. To bid drop out when the bidding exceeds your true value
d. To size up your competition to determine how much to shade your bid
c
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Legal restrictions on entry into an industry
a. are strongly opposed by those already in an industry. b. are promoted through lobbying efforts by those already in the industry, thereby further increasing the social costs of monopoly. c. are promoted by those who wish to enter the industry, thereby potentially increasing the social welfare generated by the industry. d. are always instituted to protect the public's health and welfare.
If the government borrows money to finance additional spending when the economy is operating at full capacity, then we would expect
A. interest rates to rise and prices to fall. B. interest rates to fall and prices to rise. C. neither interest rates nor prices to rise. D. both interest rates and prices to rise.
High Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of WorkersChairs Produced Per Hour00110218324428530For simplicity, assume that labor is the only input. How many workers will be hired if the hourly wage for workers is $70?
A. 3 B. 4 C. 1 D. 2
Market clearing price
A. exists at a the point at which quantity demanded equals quantity supplied. B. refers to a movement along the demand curve. C. refers to a surplus. D. refers to a supply curve.