1

The less information consumers have about product quality, A the greater will be the loss of...

Question

The less information consumers have about product quality, A the greater will be the loss of...

The less information consumers have about product quality,

A the greater will be the loss of social surplus due to productive inefficiency since buyers will purchase to much of the good.

B the smaller will be the loss of social surplus due to productive inefficiency since producers will charge prices that are too high

C the greater will be the loss of social surplus due to allocative inefficiency since customers will not trust sellers comments about qualituy.

D the smaller will be the loss of social surplus due to allocative inefficiency since buyers will not question sellers comments about quality.

Answers

"C"

the greater will be the loss of social surplus due to allocative inefficiency since customers will not trust sellers comments about quality. this will be the situation of the leman market.


Similar Solved Questions

1 answers
Austin, Inc., manufactures model airplane kits and projects production at 150, 620, 250, and 750 kits...
Austin, Inc., manufactures model airplane kits and projects production at 150, 620, 250, and 750 kits for the next four quarters A (Click the icon to view the manufacturing information.) Prepare Austin's direct materials budget, direct labor budget, and manufacturing overhead budget for the year...
1 answers
How much colder is it when the temperature is -17#"^o#F than when it is 11#"^o#F?
How much colder is it when the temperature is -17#"^o#F than when it is 11#"^o#F?...
1 answers
A 68-year-old man comes to the emergency department because of a 1-week history of difficulty breathing....
A 68-year-old man comes to the emergency department because of a 1-week history of difficulty breathing. He has had recurrent palpitations over the past 2 years. During this time, he has also had several episodes of anxiety despite no change in his daily life. He has occasional sharp chest pain loca...
1 answers
The Pantovich Company is not happy with last year’s operating income of only $30,000. The selling...
The Pantovich Company is not happy with last year’s operating income of only $30,000. The selling price during the year was $15 per unit. The total variable costs were $180,000 and total fixed costs were $90,000. The sales manager wants to increase the selling price next year by 15% although s...
1 answers
Westmorland makes ink that it uses in ball point pens. The Company produces two colors of...
Westmorland makes ink that it uses in ball point pens. The Company produces two colors of ink. One is blue the other is red. Ink is made in batches with setup costs being $4,200 per batch. Demand for blue ink is significantly stronger than for red ink. During the most recent week, the company made 2...
1 answers
Tanner-UNF Corporation acquired as a long-term investment $330 million of 5.0% bonds, dated July 1, on...
Tanner-UNF Corporation acquired as a long-term investment $330 million of 5.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Tanner-UNF pai...
1 answers
What is Voice Onset Timing (VOT)? Please define the three primary ways to phonate for stops:...
What is Voice Onset Timing (VOT)? Please define the three primary ways to phonate for stops: Negative/Lead VOT, Short-lag VOT, and Long-lag VOT? Also, explain how a mono-English speaker may interrupt the stops of the following languages and please explain WHY: 1. French A. Voiced Stops = Negative/Le...
1 answers
The #sqrt75# is between what two integers?
The #sqrt75# is between what two integers?...
1 answers
1. If a stock had a beta of 1.5 we would say that a. it is...
1. If a stock had a beta of 1.5 we would say that a. it is less volatile than the market b. it is more volatile than the market c. It has a higher chance of generating returns d. it has a lower chance of generating returns 2. True/False. Mutual funds represent a basket of diversified securities 3. T...
1 answers
3. A cylindrical shell centered along the z-axis extends between r = 2 cm tor=4 cm,...
3. A cylindrical shell centered along the z-axis extends between r = 2 cm tor=4 cm, and z=0 to z = 5 cm. If the volume charge density is given by pv = 4r x 104 (C/m²). a. Make a 3D sketch showing the shell geometry. Identity the relevant coordinate system used. b. Find the total charge (Q) cont...
1 answers
Consider an options trader who sets up a condor trading strategy on Boston Scientific Corp. stock....
Consider an options trader who sets up a condor trading strategy on Boston Scientific Corp. stock. The option trader buys a call option with a strike price of $25, sells a call option with a strike price of $30, sells a call option with a strike price of $40, and buys a call option with a strike pri...
1 answers
Which condition enhances lymphatic flow? a. Increased tissue hydrostatic pressure b. Increased interstitial fluid colloid osmotic...
Which condition enhances lymphatic flow? a. Increased tissue hydrostatic pressure b. Increased interstitial fluid colloid osmotic pressure c. Increased capillary oncotic pressure d. Decreased capillary hydrostatic pressure...
1 answers
2. Show how you would make each of the following molecules below using either an Aldol...
2. Show how you would make each of the following molecules below using either an Aldol or Claisen condensation. You only need to show the necessary starting materials. (6 pts.) os OCH2CH3...
1 answers
High-Low Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio...
High-Low Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions (1) through (3) that foll...
1 answers
Homework #2: Equipment Rate Development Develop familiarity with the cost components of Equipment and how to...
Homework #2: Equipment Rate Development Develop familiarity with the cost components of Equipment and how to develop an hourly equipment rate jective: Using the concepts presented in the lecture and the information provided below, develop an hourly equipment rate for a late-model Cat 320N excavator ...
1 answers
Exercise 8-1 Cost of plant assets LO C1 Rizio Co. purchases a machine for $11,300, terms...
Exercise 8-1 Cost of plant assets LO C1 Rizio Co. purchases a machine for $11,300, terms 2/10, n/60, FOB shipping point. The seller prepaid the $255 freight charges, adding the amount to the invoice and bringing its total to $11,555. The machine requires special steel mounting and power connections ...
1 answers
Hello, I was wondering if you help me with mine accounting problem, Exercise 2.2 page 43 in the book Workplace Communication The Basics Canadian Edition. EXERCİSES 43 In Exercises dify del, for Exerci...
Hello, I was wondering if you help me with mine accounting problem, Exercise 2.2 page 43 in the book Workplace Communication The Basics Canadian Edition. EXERCİSES 43 In Exercises dify del, for Exercise 2.1 You're the assistant to the personnel manager of a metals fabrication plant. Monday ...
1 answers
P 12-18 (similar to) 8 You have a portfolio with a standard deviation of 28% and an expected return of 20%. You are...
P 12-18 (similar to) 8 You have a portfolio with a standard deviation of 28% and an expected return of 20%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portf...

-- 0.011187--