Why, according to behavioral economics, would supermarkets place gum, candy, and other small convenience items near the cash registers?
A. Those are the shelving locations that minimize costs.
B. Stores try to make frequently purchased items quicker and easier for consumers to access.
C. Smaller items tend to fall through shopping cart holes, so stores reduce that problem for
consumers by having smaller items at the checkout stands.
D. Many of these are small items that people will buy on an impulse.
Answer: D
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A market has ten firms, whose market shares are given in the table above
a) If firms I and J wanted to merge, according to the Department of Justice guidelines, would the Department of Justice challenge the merger? b) If firms A and B wanted to merge, according to the Department of Justice guidelines, would the Department of Justice challenge the merger?
A member of a cartel like OPEC has an incentive to
A) support equal production quotas for each member. B) argue for larger production quotas for each member of the cartel. C) abide by its individual production quota. D) agree to a low cartel production level and then produce more than its quota.
The main cost of a college education is
A. the opportunity cost of not working. B. dependent upon whether one's parents pay for the college or not. C. tuition if one goes to a private college and room and board if one goes to a public college. D. the lack of practical experience from spending time in college.
Other things remaining the same, which of the following is likely to increase both the wage rate and the number of workers hired in a steel-producing factory?
A) An increase in the opportunity cost of leisure B) A decrease in the opportunity cost of leisure C) The introduction of labor-saving technology in the factory D) The introduction of labor-complementary technology in the factory