One result of adverse selection in the market for used cars is:
A. more lemons (low quality) may be offered for sale than plums (high quality).
B. more plums (high quality) may be offered for sale than lemons (low quality).
C. few lemons (low quality) are sold.
D. no used cars are sold.
Answer: A
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Refer to Table 20-15. Looking at the table above, real average hourly earnings were equal to ________ in 2015
A) $9 B) $9.52 C) $10 D) $12
The perfectly competitive firm maximizes profits when
A) it produces and sells the quantity at which the difference between marginal revenue and marginal cost is the greatest. B) it produces and sells the quantity at which marginal revenue and marginal cost are equal. C) it produces and sells the quantity at which the difference between average revenue and average cost is the greatest. D) it produces and sells the quantity at which the difference between price and average cost is the greatest.