Behavioral economists suggest that brand-loyalty, which can be a source of monopoly power for the producer, may be explained by consumers' tendency to have the:
A. Anchoring effect
B. Mental accounting effect
C. Status quo bias
D. Confirmation bias
C. Status quo bias
You might also like to view...
The crowding-out effect implies that a government budget deficit ________ the demand for loanable funds and ________ equilibrium investment
A) increases; decreases B) does not change; does not change C) increases; increases D) decreases; decreases E) decreases; increases
Jennifer buys a piece of costume jewelry for $33 for which she was willing to pay $42. The minimum acceptable price to the seller, Nathan, was $30. Jennifer experiences:
A. a consumer surplus of $12 and Nathan experiences a producer surplus of $3. B. a producer surplus of $9 and Nathan experiences a consumer surplus of $3. C. a consumer surplus of $9 and Nathan experiences a producer surplus of $3. D. a producer surplus of $9 and Nathan experiences a producer surplus of $12.
The payoff matrix shows all of the following EXCEPT
A. if one chooses a low price and the other doesn't, the low priced firm will make $8 million. B. if one oligopolist chooses a high price and the other doesn't, the high-priced firm makes $8 million. C. if they both choose a low price, each makes $4 million. D. if both oligopolists choose a high price, each makes $6 million.
Scarce government resources in developing countries would be best spent on
a. circulating basic health information b. modern medical equipment c. medical schools d. health care insurance e. none of the above