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Author Question: One practical implication of a kinked market supply curve is that: A) producer surplus is not ... (Read 165 times)

jake

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One practical implication of a kinked market supply curve is that:
 
  A) producer surplus is not defined at the kink point.
  B) the MC = MR rule does not hold at the kink point.
  C) the market supply elasticity for a price increase may be different than the market supply elasticity for a price decrease at the kink point.
  D) All of the above are true.

Question 2

In insurance markets, moral hazard creates economic inefficiency because:
 
  A) insurance companies are price setters rather than price takers.
  B) insurance products are not homogenous goods.
  C) there are many buyers but only a few sellers.
  D) insured individuals do not correctly perceive the costs or benefits of their actions.



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kilada

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Answer to Question 1

C

Answer to Question 2

D




jake

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Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review


blakcmamba

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Reply 3 on: Yesterday
Gracias!

 

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