If information in the market for used motorcycles is symmetric and both buyers and sellers are equally ignorant, then
A) the market is efficient.
B) both good and bad motorcycles will sell for the same price.
C) if only good motorcycles are sold, the price would be higher.
D) All of the above.
D
Economics
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Refer to Scenario 1-1. Had the firm not produced and sold the last 3,000 cell phones, would its profit be higher or lower, and by how much?
A) Its profit will be $6,000 lower. B) Its profit will be $700 lower. C) Its profit will be $700 higher. D) Its profit will be $6,700 higher.
Economics
Beginning in 2008, The Federal Reserve and the U.S. Treasury Department responded to the financial crisis by intervening in financial markets in unprecedented ways. Briefly summarize the actions of the Fed and Treasury
What will be an ideal response?
Economics