A second-price auction:
A. has two Nash equilibriums.
B. does not have a Nash equilibrium.
C. leads to a winner's curse.
D. avoids the winner's curse.
D. avoids the winner's curse.
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According to this Application, in the 1990s EU countries had ________ in the production of all products compared to Latvia
A) an absolute advantage and a comparative advantage B) neither an absolute advantage nor a comparative advantage C) an absolute advantage but not a comparative advantage D) a comparative advantage but not an absolute advantage
Economic analysis of product differentiation leads to all of the following conclusions except one. Which is the exception?
a. Product differentiation makes it harder for firms to collude. b. Product differentiation makes price leadership harder to maintain. c. Product differentiation sometimes contributes to wasteful allocation of resources. d. Product differentiation must be based on real, substantive differences among products. e. There is a tradeoff between using resources efficiently and providing consumers with wide choices.