Intermediaries, known as middlemen, specialize in
A. negotiating low prices for buyers.
B. reducing transaction costs.
C. encouraging consumers to buy goods on credit, rather than with cash.
D. negotiating high prices for sellers.
Answer: B
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An auction of the leases to drill for natural gas on about 55,000 acres on the Roan Plateau in western Colorado in August 2008 generated nearly $114 million, a record high for onshore energy lease sales in the lower 48 states
What is going on in the rental market for land? A) There is a decrease in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate. B) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to a decrease in the equilibrium rental rate. C) There is an increase in the supply of acreage on the Roan Plateau, leading to an increase in the equilibrium rental rate. D) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate.
Which of the following is an example of a carrying cost of holding an inventory?
A) the delivery charges for an order B) the cost of storage C) the cost of the paperwork necessary to pay for each order D) the managerial time spent creating an order for inventory
In a constant-cost industry, input prices remain constant as:
a. the supply of inputs fluctuates. b. firms encounter diseconomies of scale. c. workers become more experienced. d. firms enter and exit the industry.
The market clearing price refers to the:
A. price where quantity demanded and quantity supplied are the same. B. equilibrium price that quantity supplied is the highest possible. C. maximum price where all suppliers are willing to sell all their production. D. minimum price at which items could be sold.