Author Question: When asymmetric information problems drive high quality products from a market, we refer to this ... (Read 96 times)

karen

  • Hero Member
  • *****
  • Posts: 537
When asymmetric information problems drive high quality products from a market, we refer to this situation as:
 
  A) adverse selection.
  B) moral hazard.
  C) a lemons problem.
  D) A and C are correct.
  E) B and C are correct.

Question 2

Which of the following is NOT true regarding monopoly?
 
  A) Monopoly is the sole producer in the market.
  B) Monopoly price is determined from the demand curve.
  C) Monopolist can charge as high a price as it likes.
  D) Monopoly demand curve is downward sloping.



b614102004

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

D

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

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?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

For a complete list of videos, visit our video library