Which of the following actions may be explained by the law of small numbers?
A) People buy lottery tickets.
B) People buy air travel insurance.
C) People purchase extended or long-term warranties or maintenance contracts for new automobiles and appliances.
D) all of the above
D
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Axis Group has a publishing house, operates in the sports gear market, and owns a coffee plantation. A board of directors is responsible for the overall performance of the group. Fabrics Inc, on the other hand specializes in women's apparel. Which of the following statements will be true?
a. Decision-making at Axis will be more decentralized in comparison to Fabrics, Inc. b. Many decisions at Fabrics is likely to be made at lower levels. c. Individuals at higher levels at Fabrics are less likely to have all of the knowledge that exists at lower levels. d. Information transfer within Axis Group will be easier as compared to Fabrics, Inc.
Jo loves mystical objects. Her marginal utility for the first tarot deck is very high but declines rapidly with each subsequent deck she buys. Her marginal utility for the first crystal is much lower but declines more slowly with each subsequent crystal she buys. Assuming the marginal utility per dollar she receives from the first tarot deck is higher than the marginal utility per dollar she receives from the first crystal, what could she do to reach consumer equilibrium?
a. Stop buying crystals completely and start buying tarot decks. b. Stop buying tarot decks completely and start buying crystals. c. Buy only tarot decks until their marginal utility per dollar equals that of the first crystal. d. Buy only crystals until their marginal utility per dollar equals that of the first tarot deck.
Exhibit 15-6 Aggregate demand and supply model
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In Exhibit 15-6, if the aggregate demand curve is at AD2, the government should:
A. raise taxes to move to AD1. B. not change its policy. C. cut taxes to move to AD3. D. cut spending to move to AD3.
If a firm sells 200 units of output at $15 per unit and 210 units of output when price is reduced to $14, its marginal revenue from selling the last unit is
A) $60. B) $210. C) $294. D) -$60.