A firm sells grapefruit in a perfectly competitive market at a price of $1.50 per pound. The firm's marginal revenue:
a. equals $1.50
b. is less than $1.50.
c. is greater than $1.50.
d. cannot be determined from the information provided.
a
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Refer to the figure above. What is the producer surplus after Lithasia opens up to free trade?
A) $2 B) $3 C) $6 D) $9
The company that manufactures Screaming Chocolate Zonkers breakfast cereal finds that its sales collapse, it is forced into bankruptcy, and it defaults on its bonds, as a result of information on the filthy conditions in its factory, which had long
been known to management, leaking out to the general public. This incident is best thought of as an example of A) symmetric information in the financial markets. B) asymmetric information in the financial markets. C) moral hazard in the financial markets. D) the generally poor state of sanitation in the food-processing industry in the United States.