How have firms and organizations devised ways to overcome information problems without government intervention? Give three examples
Please provide the best answer for the statement.
First, many manufacturers offer warranties for products to assure consumers that the product is one of quality and there is a recourse for correcting major problems with the product which will not be at the expense of the buyer. These warranties address the lack of buyer information about the seller. Second, organizations can produce product information reports to help consumers make decisions with more information and confidence. One example of such a guide would be the monthly Consumer Reports publication. Third, franchising standardizes the product or the service produced by companies. This standardization gives the consumer some assurance of what to expect from each seller of that similar good or service in a different location.
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According to the quantity theory of money, in the long run
A) an increase in the quantity of money creates an increase the price level but no increase in real GDP. B) the quantity of money in the economy will always be just the right amount. C) an increase in the quantity of money creates an increase in the price level and in real GDP. D) None of the above answers are correct.
Profit maximization requires that
A) the marginal factor cost of every input equals that input's marginal physical product. B) the marginal factor cost of every input equals that input's marginal revenue product. C) the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input. D) equal amounts of each input are employed.