In Table 9.1, Market 1 would be in equilibrium if buyers believed lemons accounted for:
A. 60% of the market.
B. 55% of the market.
C. 45% of the market.
D. 40% of the market.
Answer: A
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According to the text, a government policy of promoting competition must
A) assure small businesses they won't fail because of below-cost pricing or other predatory practices by larger businesses. B) assure small businesses they won't fail under any circumstances. C) equate profit margins among competing suppliers. D) maintain a process rather than some state of affairs. E) work toward making sellers' demand curves completely elastic.
Economic rent is a payment for a factor of production that elicits an increase in the quantity supplied.
Answer the following statement true (T) or false (F)
In the above table, what is the marginal revenue product of the 2nd worker?
A) $99 B) $70 C) $110 D) $9
When a subsidy is paid to potato growers, the market equilibrium quantity of potatoes ____ and the market price ____. In the market for potatoes, the MSC ____ MSB.
Fill in the blank(s) with the appropriate word(s).