« previous next »

Author Question: When can a seller's investment in reducing transaction cost increase the price of the product to ... (Read 69 times)

ETearle

  • Hero Member
  • *****
  • Posts: 580
on: Jun 30, 2018
When can a seller's investment in reducing transaction cost increase the price of the product to customers but still leave them better off?

Question 2

Which of the following is uncharacteristic of monopolistic competition in the long run?
 a. a large number of sellers in the industry
  b. zero economic profits
 c. price in excess of marginal cost
 d. firms have no excess capacity


Galvarado142

  • Sr. Member
  • ****
  • Posts: 348
Reply #1 on: Jun 30, 2018
Answer to Question 1

When the seller tries to reduce transaction cost through informative advertising, the customer's cost of acquiring information reduces, thereby making them better off.

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
Effect of Perceived Price of a Drug on Placebo Analgesia Effect of Perceived Price of a Drug on Placebo Analgesia
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
To find the derivative use product rule To find the derivative use product rule
The phenotype of an organism is the product of interactions The phenotype of an organism is the product of interactions
The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ... The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ...
Video: Oral Hygiene & Braces Animation

For a complete list of videos, visit our video library