The fact that people are willing to pay much more for a diamond, which is not needed for survival, than they are willing to pay for a cup of water, which is needed for survival, is an example of irrational behavior
a. True
b. False
Indicate whether the statement is true or false
False
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A firm’s average fixed cost
A. does not vary with output. B. decreases as output rises. C. is equal to average cost when average cost is minimized D. causes marginal cost to rise as output rises.
The market structure in which each firm has a monopoly over the product it makes, but many other firms make similar products that compete for the same customers is called
In a game of bargaining, the player who is willing to:
A. make the first move has more bargaining power and so receives a better payoff. B. hold out longer has more bargaining power and so receives a better payoff. C. be cooperative has more bargaining power and so receives a worse payoff. D. hold out longer has more bargaining power and so receives a worse payoff.
In economics, investment refers to the process of accumulating:
A. capital goods. B. consumer goods. C. money. D. stocks and bonds.