The incentive to collect information is undermined by the ________
A) opportunity cost of collecting information
B) asymmetric character of information flows
C) free rider problem
D) Willamette effect
C
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If a duopoly has reached the monopoly outcome, a firm can increase its profit if it and it alone ________ its price and ________ its production
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases E) raises; does not change
Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500
If you didn't go to school, you'd live in your parents' house for free, but your other living expenses would be about the same. Also, if you didn't go to school you'd work full time and could earn $8,000. You can still work part time while attending the summer school, but you will earn only $3,000. a) What will the summer school cost you in terms of money explicitly paid? b) What are the opportunity costs of going to summer school that you don't pay explicitly? Explain. c) What is your total opportunity costs of going to school this summer? Explain your answer.