In a market with information asymmetry, gains from trade occur if:
A) the value of the good to the seller is greater than its value to the buyer.
B) the value of the good to the buyer is greater than its value to the seller.
C) the variable cost of producing the good is zero.
D) the opportunity cost of consuming the good is zero.
B
Economics
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Describe how a firm that sells only one brand of bleach may be able to increase its profit if it re-labels some of its bleach
What will be an ideal response?
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Assume Congress passes a new tax of $2.00 per pack on cigarettes. The effect on the supply curve is a(n):
a. decrease in supply. b. increase in supply. c. decrease in quantity supplied. d. increase in quantity supplied.
Economics