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

Author Question: One practical implication of a kinked market supply curve is that: A) producer surplus is not ... (Read 162 times)

jake

  • Hero Member
  • *****
  • Posts: 538
on: Jul 1, 2018
One practical implication of a kinked market supply curve is that:
 
  A) producer surplus is not defined at the kink point.
  B) the MC = MR rule does not hold at the kink point.
  C) the market supply elasticity for a price increase may be different than the market supply elasticity for a price decrease at the kink point.
  D) All of the above are true.

Question 2

In insurance markets, moral hazard creates economic inefficiency because:
 
  A) insurance companies are price setters rather than price takers.
  B) insurance products are not homogenous goods.
  C) there are many buyers but only a few sellers.
  D) insured individuals do not correctly perceive the costs or benefits of their actions.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kilada

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

D


jake

  • Member
  • Posts: 538
Reply 2 on: Jul 1, 2018
Gracias!

31809pancho

  • Member
  • Posts: 317
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

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?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r
The titration curve of the buffer acetic acid (CH3COOH) The titration curve of the buffer acetic acid (CH3COOH)
An Oil-dependent World— Supply and Demand Driven An Oil-dependent World— Supply and Demand Driven
How to create a sine equation when the curve is given How to create a sine equation when the curve is given
The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur
The age-of-onset curve for Huntington disease (HD) The age-of-onset curve for Huntington disease (HD)
Video: Random alignment at Metaphase I Animation

For a complete list of videos, visit our video library