If the cross-price elasticity is negative, we can conclude that the two goods are ______ because the price of one good and the demand for the other move in opposite direction.

In the long-run, the firm can only expand output by adding more variable inputs (workers and raw materials)

a. True b. False Indicate whether the statement is true or false

Asymmetric information can lead to the ________-informed parties to try to take advantage of the ________-informed parties, which can cause ________.

A) better; less; moral hazard, but not adverse selection B) better; less; moral hazard and adverse selection C) less; better; adverse selection, but not moral hazard D) less; better; moral hazard, but not adverse selecti