Which of the following is true of warranties?
A. They are not important costs in the business world.
B. They increase contracting costs in the business world.
C. They leave contracting costs unchanged in the business world.
D. They reduce contracting costs in the business world.
Answer: D
You might also like to view...
In pursing its own interest, an oligopoly firm will decide to increase production by 1 unit as long as
a. there is no output effect. b. there is no price effect. c. the output effect is larger than the price effect. d. the price effect is larger than the output effect.
The production possibilities curve shows all possible combinations of
A) two goods that are desired by society. B) two goods that can be efficiently produced with a given set of resources. C) two goods that can be purchased given the prices of the goods. D) two goods that two countries can trade with each other.
Explicit Costs
What will be an ideal response?
Following the financial collapse in late 2008, the deficit increased, in part because of the
A. weakened state of the economy caused increased spending on unemployment compensation. B. high short-term interest rates and restrictive monetary policy. C. massive expansion of foreign aid to Central American democracies. D. U.S. return to the gold standard.