« previous next »

Author Question: Assume that both high and low quality appliances are sold in the used appliance market. If we assume ... (Read 119 times)

Shelles

  • Hero Member
  • *****
  • Posts: 582
on: Jul 1, 2018
Assume that both high and low quality appliances are sold in the used appliance market. If we assume asymmetric information with sellers having more information regarding quality than buyers, which of the following is necessarily true? The
 
  A) fraction of high quality appliances will be greater than under perfect knowledge.
  B) fractions of high and low quality appliances will be the same as with perfect information.
  C) fraction of high quality appliances will be less than with perfect information.
  D) none of the above

Question 2

If current output is less than the profit-maximizing output, then the next unit produced
 
  A) will decrease profit.
  B) will increase cost more than it increases revenue.
  C) will increase revenue more than it increases cost.
  D) will increase revenue without increasing cost.
  E) may or may not increase profit.


scikid

  • Sr. Member
  • ****
  • Posts: 300
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

(a) With few ticks, moose retain a brown coat; (b) at high numbers of ticks, moose self-groom, destr (a) With few ticks, moose retain a brown coat; (b) at high numbers of ticks, moose self-groom, destr
Avoiding High-Pollution Exercise Times Avoiding High-Pollution Exercise Times
Rank-order correlations show that differential consistency remains high from childhood through late ... Rank-order correlations show that differential consistency remains high from childhood through late ...
HIV-positive men with a high number of life stressors progress more quickly to AIDS than those with ... HIV-positive men with a high number of life stressors progress more quickly to AIDS than those with ...
The posted octane rating in most high-altitude areas shows regular at 85 instead of the usual 87. The posted octane rating in most high-altitude areas shows regular at 85 instead of the usual 87.
A high-resolution model of the 50S ribosomal subunit A high-resolution model of the 50S ribosomal subunit
Video: Anatomy and Chemical Makeup of a Single Hair (Animation)

For a complete list of videos, visit our video library