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 22 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

amynguyen1221

  • Member
  • Posts: 355
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Cumulative change for six personality-trait domains across the life course show distinct patterns. Cumulative change for six personality-trait domains across the life course show distinct patterns.
Common Adverse Effects of Corticosteroids Common Adverse Effects of Corticosteroids
Evidence of natural selection: Canis lupus familiaris Evidence of natural selection: Canis lupus familiaris
The roots of climate change The roots of climate change
Land use change and forestry are responsible for 18% of global greenhouse gas emissions Land use change and forestry are responsible for 18% of global greenhouse gas emissions
Determine the enthalpy change of this reaction Determine the enthalpy change of this reaction
Video: Virtual Tour of the Heart

For a complete list of videos, visit our video library