Which of the Following Is an Assumption in the Two-Sided

question 45

Multiple Choice

Which of the following is an assumption in the two-sided search model about the matching function?

• A) The increase in matches from an increase in Q is increasing in Q.
• B) The number of matches increases if Q increases but A decreases.
• C) The number of matches increases if Q or A decrease.
• D) The increase in matches from an increase in A is increasing in A.
• E) The increase in matches from an increase in Q is decreasing in Q.

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Definitions:

Broccoli

A green vegetable with a large flowering head, often eaten as food.

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The principle that as a consumer consumes more of a good, the additional satisfaction gained from each additional unit decreases.

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