Author Question: If consumers have limited information about price and search costs exist, then A) the result must ... (Read 76 times)

future617RT

  • Hero Member
  • *****
  • Posts: 543
If consumers have limited information about price and search costs exist, then
 
  A) the result must be that all firms will charge the same price.
  B) the monopoly price must result.
  C) the full-information, competitive price is not an equilibrium.
  D) the difference in prices between firms will be greater than the search cost.

Question 2

Empirical studies conclude that advertising
 
  A) raises prices in all markets.
  B) can reduce the prices of many goods.
  C) reduces the prices on all goods.
  D) has no impact on prices.


Melissahxx

  • Sr. Member
  • ****
  • Posts: 304
Answer to Question 1

C

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

For a complete list of videos, visit our video library