Per-unit transaction costs
a. may cause the demand and supply curves to shift either inward or outward depending on the value obtained from transaction agents.
b. refer only to the commission paid to a third party for each transaction made.
c. are absorbed by the party seeking the transaction.
d. have the same effect on behavior as do lump-sum transaction costs; the difference in terminology is purely definitional.
a
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Which of the following is not a limitation that regulators face when they implement average cost pricing?
a. Average cost pricing provides little or no incentive for firms to keep costs down. b. The accurate calculation of a firm's costs is difficult. c. Decisions are political and often influenced by special interests. d. All of the preceding are limitations faced by regulators implementing average cost pricing.
Which of the following is NOT exempt from antitrust laws?
A) professional baseball B) labor unions C) airlines D) public transit systems
Studies have shown that
A) firms often cut nominal wages during recessions and allow inflation to gradually increase real wages. B) firms are reluctant to cut nominal wages during recessions but instead increase workers' nominal wages and allow inflation to gradually increase real wages. C) firms are reluctant to cut nominal wages during recessions but instead freeze workers' nominal wages and allow inflation to gradually reduce real wages. D) firms often freeze workers' nominal wages during a recession and keep the wages frozen well after the recession has ended.
Which of the following is an example of a positive statement?
A) Prices determine what goods and services are produced in a market economy. B) The government of the Soviet Union determined the three fundamental questions of microeconomics (i.e., what is produced, how it is produced, who receives the product). C) The production of goods and services should be determined by market prices. D) A and B