Table 14.3In Table 14.3, Market 1 would be in equilibrium if buyers believed lemons account for:
A. about 83.33% of the market.
B. about 71.43% of the market.
C. about 66.67%% of the market.
D. about 42.86% of the market.
Answer: A
Economics
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Resources are efficiently utilized when production is such that marginal social benefit
A) is equal to marginal social cost. B) exceeds marginal social cost by as much as possible. C) is less than marginal social cost. D) None of the above because efficiency has to do with property rights and has nothing to do with marginal social benefit or marginal social cost.
Economics
Most firms have
a. no monopoly pricing power. b. some monopoly pricing power. c. absolute monopoly pricing power. d. the ability to earn monopoly profits.
Economics