A rent ceiling set above the equilibrium rent has no effect

Consider a used car market in which half the cars are good and half are bad (lemons). Suppose the average price of a good car is $9,000 and the average price of a lemon is $3,000

If rational buyers are willing to pay $6,000 for a used car, then sellers will agree to sell mostly lemons at this price. What is the term used to describe this situation? A) adverse selection B) an efficient market C) moral hazard D) economic irrationality

Economies of scale can

A) result in an increasing cost industry. B) cause firm exits out of the industry. C) prevent the entry of new firms into a market. D) reduce the rate of return which the firm may earn.