The informal sector is characterized by
a. firms that don't pay their taxes
b. firms from other countries that are not subject to local laws
c. firms producing illegal goods
d. firms that are small and often able to avoid many government regulations
e. all of the above
D
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If Tom is participating in an open outcry English auction, he should ________
A) bid up to his maximum willingness to pay B) bid above his maximum willingness to pay C) bid below his value for the good being auctioned D) pay a fee to place a bid
The Brooks Appliance Store and the Lefingwell Appliance Store (both are located in the same city) each sell an identical washer-dryer pair. The owner of each store considered offering the washer-dryer pair for $700, but decided on a price of $500
If this is a Nash equilibrium we can conclude that A) the owners of the stores feared that charging $700 could be used as evidence of collusion. B) charging $500 was the most profitable strategy for each store, regardless of what price was charged by the other store. C) the stores were less concerned about making a profit from the washer-dryer pair than they were with attracting customers who would also buy other appliances. D) each store owner feared charging the higher price would result in being undercut by the other store charging the lower price.