With asymmetric information among consumers and positive search costs, a firm may
A) raise its price above the monopoly price.
B) price at the monopoly level.
C) price at the full information competitive level.
D) None of the above.
B
Economics
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Because of price stickiness in the Keynesian model, a decline in investment demand will not cause the
A) LM curve to shift down and to the right in the short run. B) LM curve to shift in the long run. C) IS curve to shift down and to the left in the short run. D) IS curve to shift in the long run.
Economics
Refer to the given data. If the market wage rate is $8, this firm will employ:
A. 2 workers.
B. 3 workers.
C. 4 workers.
D. 5 workers.
Economics