« previous next »

Author Question: When can a seller's investment in reducing transaction cost increase the price of the product to ... (Read 19 times)

ETearle

  • Hero Member
  • *****
  • Posts: 580
on: Jun 30, 2018
When can a seller's investment in reducing transaction cost increase the price of the product to customers but still leave them better off?

Question 2

Which of the following is uncharacteristic of monopolistic competition in the long run?
 a. a large number of sellers in the industry
  b. zero economic profits
 c. price in excess of marginal cost
 d. firms have no excess capacity


Galvarado142

  • Sr. Member
  • ****
  • Posts: 348
Reply #1 on: Jun 30, 2018
Answer to Question 1

When the seller tries to reduce transaction cost through informative advertising, the customer's cost of acquiring information reduces, thereby making them better off.

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

When using forearm pressure on the top of the shoulder, push with your back foot to increase your ... When using forearm pressure on the top of the shoulder, push with your back foot to increase your ...
The direct product of phosphate hydrolysis from PEP is the enol form of pyruvate The direct product of phosphate hydrolysis from PEP is the enol form of pyruvate
NADH acts as a reducing agent in several reactions NADH acts as a reducing agent in several reactions
the transamination product of tryptophan is decarboxylated to yield indole-3-acetic acid, or auxin the transamination product of tryptophan is decarboxylated to yield indole-3-acetic acid, or auxin
Find the two integers that have a sum of 20 and a maximum product Find the two integers that have a sum of 20 and a maximum product
Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ... Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...
Video: The 4 steps of translation Animation

For a complete list of videos, visit our video library