This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Adverse selection is created by A) incentives to change behavior after two parties have reached ... (Read 23 times)

tiara099

  • Hero Member
  • *****
  • Posts: 588
on: Jun 29, 2018
Adverse selection is created by
 
  A) incentives to change behavior after two parties have reached an agreement.
  B) risk.
  C) lump-sum taxes.
  D) private information.

Question 2

What is the best outcome for society: when firms in an oligopoly enter into a collusive agreement to operate as a monopoly or when they act as perfect competitors? Briefly explain your answer.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

efwsefaw

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The best outcome for society is when the firms act as perfect competitors. Perfect competition produces the efficient quantity of output. A monopoly restricts the quantity of output it produces and creates a deadweight loss, which harms society So society is better off if the firms compete rather than collude and operate as a monopoly.


tiara099

  • Member
  • Posts: 588
Reply 2 on: Jun 29, 2018
Excellent

Missbam101

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

The deer mouse and the African elephant represent extremes among mammals of r versus K selection. The deer mouse and the African elephant represent extremes among mammals of r versus K selection.
Risk-taking behavior by young males. Risk-taking behavior by young males.
An example of a selection list used to identify symptoms. An example of a selection list used to identify symptoms.
Religion can promote social change, as was evident in the U.S. civil rights movement. Dr. Martin ... Religion can promote social change, as was evident in the U.S. civil rights movement. Dr. Martin ...
Change in Annual Precipitation Over Land, 1901-2010 Change in Annual Precipitation Over Land, 1901-2010
Created Equal: A Social and Political History of the United States, Brief Edition Created Equal: A Social and Political History of the United States, Brief Edition
Video: Renin/Angiotensin (water gain from urine & Na ion and water reabsorption)

For a complete list of videos, visit our video library