Explain why some people who are applying for a job at a bank dress up, arrive early, and have their paperwork neatly completed for the job interview
What will be an ideal response?
They are trying to eliminate adverse selection. These people are trying to signal that they would be a high-quality worker for the position at the bank.
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Under perfect competition, the demand curve facing a firm and the firm's marginal revenue curve are
a. vertical at the firm's chosen output level b. both vertical, but the demand curve is further to the right than the marginal revenue curve c. both vertical, but the marginal revenue curve is further to the right than the demand curve d. both horizontal at the level of the market price e. both horizontal, but the demand curve is above the marginal revenue curve
When total revenue minus total economic cost is equal to zero, the firm is
a. earning above-average economic profit. b. earning the normal profit rate. c. losing too much money to stay in business. d. earning abnormally low profits.