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Author Question: Signals solve the adverse selection problem A) if the signal is an advertisement placed in the ... (Read 132 times)

Pineappleeh

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on: Jul 1, 2018
Signals solve the adverse selection problem
 
  A) if the signal is an advertisement placed in the New York Times or other top-tier publication.
  B) only if the signal is viewed as credible.
  C) when the signal is expensive to produce.
  D) if the signaling firm is known to be a profit-maximizer.

Question 2

When a firm experiences increasing returns to scale
 
  A) its AFC will decrease.
  B) its AFC will increase.
  C) its AC will increase.
  D) its AC will decrease.


nicoleclaire22

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Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

D


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Pineappleeh

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Reply #2 on: Jul 1, 2018
Thank you :)


nicoleclaire22

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Reply #3 on: Jul 1, 2018
Happy to help you


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