The problem of asymmetric information that brings about a general decline in product quality in an industry is

Suppose that the production function is Y = AK0.35L0.65, the number of workers equals 800, the capital stock is $150,000, and real GDP is $750,000. What is the value of total factor productivity?

What will be an ideal response?

One reason why a consumer might buy from a high-priced local hardware store instead of going to a big discount store several miles away in another community is that

a. the local store will still have lower money prices b. the time cost of going to the local store is equal to going to the discount store c. comparing the sum of money prices and time cost, the local hardware store is a bargain for people who value time highly d. comparing the sum of money prices and time cost, the local hardware store is a bargain for people who earn low hourly wages e. the time cost of going to the discount store is less than going to the local hardware store