Because the presence of a warranty for a good is a signal that the good is of high quality,
A) consumers are willing and able to pay more for a good that carries a warranty.
B) consumers are willing to buy goods if and only if the goods come with warranties.
C) producers do not need to charge extra for warranties.
D) producers can use warranties to sort out high-risk customers.
E) producers must make warranties available on all goods.
A
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A socially-optimal price regulation will NOT work if:
A) marginal cost is less than average total cost. B) marginal cost is less than average fixed cost. C) marginal cost is greater than average total cost. D) marginal cost is greater than average fixed cost.
All of the following are benefits of labor unions EXCEPT
A) unions reduce wage inequity. B) unions increase the stability of the workforce. C) unions give workers a political voice. D) unions maximize employment for all workers.