Which of the following is a possible critique of the decision theory under uncertainty presented in the text?
A. Decision theory assumes that people face the same situation (uncertainty) repeatedly.
B. Decision theory assumes that people are good at math.
C. People are not risk averse.
D. People do not always know the "true" probability of complicated events.
Answer: D
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If a monopoly engages in first-degree price discrimination:
A) social surplus is maximized. B) consumer surplus is maximized. C) producer surplus is minimized. D) the deadweight loss is maximized.
A typical firm in the US economy would he classified as
a. Perfectly competitive. b. Imperfectly competitive. c. A duopolist d. An oligopolist
Why is it important that a firm have different groups of consumers with different demand elasticities if it wishes to engage in price discrimination?
What will be an ideal response?
Marginal analysis of a 'one thing' decision
What will be an ideal response?