Microeconomics

Some companies subject their applicants to extensive tests. Why? A) to reduce the informational ...

Started by Mr. Wonderful

If bad drivers can usually avoid being ticketed by the police, then insurance companies will A) ...

Started by sdfghj

Assume health insurance is provided universally by the government. This would A) force every ...

Started by TVarnum

What role does a company like J.D. Power (which provides product satisfaction reviews) serve? A) ...

Started by nummyann

Signals may prevent adverse selection if A) sending a false signal is cheap for the agent. B) ...

Started by misspop

Signals can help prevent adverse selection as long as a false signal is costly to the person sending ...

Started by wrbasek0

Explain why some people who are applying for a job at a bank dress up, arrive early, and have their ...

Started by kshipps

Selling the same product under different brand names allows a firm to price discriminate as long as ...

Started by Sufayan.ah

The number of brands of identical products will most likely increase as A) the number of informed ...

Started by Charlie

The XYZ Co sells shirts. Shirts with the company label on the tag are perceived to be of higher ...

Started by karateprodigy

Competitive firms are able to set price above marginal cost when A) the markup is less than the ...

Started by BRWH

If there is zero search cost, then in the presence of asymmetric information, competitive firms will ...

Started by hubes95

The Internet has made it possible to compare lots of prices without incurring a lot of cost. If ...

Started by rayancarla1

With asymmetric information among consumers and positive search costs, a firm may A) raise its ...

Started by bio_gurl

If consumers have limited information about price and search costs exist, then A) the result must ...

Started by future617RT

In the tourist-trap model, a consumer might pay more than marginal cost for a good sold in a ...

Started by ashley

Explain why high priced lawyers may support an industry ban on price advertising for lawyers. ...

Started by lracut11

Government mandated safety standards within firms A) will always decrease efficiency. B) can ...

Started by Caiter2013

Investment in safety at the firm level poses a prisoners' dilemma because A) if each firm plays ...

Started by jwb375

A pooling equilibrium occurs when A) dissimilar workers are paid alike. B) firms can distinguish ...

Started by genevieve1028

Employers verify the facts of potential employees' resumes to avoid A) signaling. B) screening. ...

Started by a0266361136

If low-quality workers are unable to obtain a college degree, then a separating equilibrium can ...

Started by jlmhmf

If a college degree is used to signal high ability, but the cost of a college degree is relatively ...

Started by ec501234

Cheap talk works at placing workers in the right job as long as A) the interests of the worker ...

Started by beccaep

Very few players are drafted into the NFL when they play at Division II or Division III schools ...

Started by Awilson837