The market for used cars is not considered perfectly competitive because:
A. there is complete information.
B. the good is standardized.
C. there are always very low transaction costs.
D. the buyers are not price takers.
Answer: D
Economics
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Suppose the consumer's income increases while the prices of the goods remain constant. Then the
A) budget constraint shifts outward parallel to the original budget constraint. B) indifference curves become flatter. C) budget constraint shifts inward parallel to the original budget constraint. D) indifference curves shift outward away from the origin.
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What is the Coase Theorem? What are transaction costs?
Economics