Prospect theory in behavioral economics predicts that as the price of flour increases, bakeries will try to avoid turning off their buyers by:
A. Increasing the unit prices of their products
B. Reducing the unit sizes of their products
C. Producing more units of their products
D. Passively accepting lower profits
B. Reducing the unit sizes of their products
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An economy's resources include
A) raw materials. B) factories and machinery. C) human knowledge. D) all of the above
In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4 units is
A) $1.20. B) $2.00. C) $5.00. D) $15.00.
Which of the following government programs provides recipients with unrestricted cash payments?
a. The food stamp program b. Medicaid c. Temporary Assistance to Needy Families (TANF) d. Housing assistance programs
The graph above shows the demand and cost conditions facing a monopolist. What price will the monopolist set?
A. $20 B. $40 C. $60 D. $30 E. $50