This topic contains a solution. Click here to go to the answer

Author Question: How do online auction sites like Ebay attempt to overcome the asymmetric information problems ... (Read 31 times)

c0205847

  • Hero Member
  • *****
  • Posts: 531
How do online auction sites like Ebay attempt to overcome the asymmetric information problems associated with goods that the buyer cannot personally inspect before purchase?
 
  A) The online auction firm only allows high-quality merchandise to be sold at their site.
  B) The previous performance (reputations) of the buyer and seller are posted for public review.
  C) Buyers can take receipt of any goods before they have to pay the seller.
  D) all of the above

Question 2

The present value formula makes it apparent that:
 
  A) a decline in the interest rate will cause a decision maker to weigh recent period returns relatively more heavily than before the decline.
  B) an increase in the interest rate will cause a decision maker to weigh distant (or future) returns relatively more heavily than before the increase.
  C) the present value of a fixed sum decreases as the time until it is to be paid increases.
  D) all of the above
  E) both A and C.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

alexanderhamilton

  • Sr. Member
  • ****
  • Posts: 334
Answer to Question 1

B

Answer to Question 2

C




c0205847

  • Member
  • Posts: 531
Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it


at

  • Member
  • Posts: 359
Reply 3 on: Yesterday
Excellent

 

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

For a complete list of videos, visit our video library