Which firm provides the better signal when trying to decide which of the firms' stock to buy?
A) Firm A, which uses an independent accounting firm for auditing.
B) Firm B, which uses an internal group for auditing.
C) Firm C, which has seen its stock go up by 20 per share in the last week.
D) Firm D, which hasn't been under SEC investigation for over 5 years.
Question 2
The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, the deadweight loss equals
A) C + E.
B) A + B + C.
C) C.
D) zero.
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