Assuming the standard assumptions, in an infinitely long repeated-play ultimatum game, the second player's best strategy is most likely to:
A. will always accept only those offers over 50 percent of the total.
B. reject offers that appear unfair.
C. will always accept any offer.
D. reject all offers.
Answer: B
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According to the law of increasing opportunity cost, as a society (a)_____________ more and more of a certain good, further production (b)________________ involve ever-greater opportunity costs, so that producing the good is associated with greater and greater (c)_____________________.
Fill in the blank(s) with the appropriate word(s)
A contract that makes a manager's salary dependent on total profit would be a type of incentive-compatible contract.
Answer the following statement true (T) or false (F)
Industrial entrepreneurs like J.P. Morgan, Henry Ford and Andrew Carnegie were driven by desires to earn profits. In the process of pursuing these profits, American consumers were made better off
Indicate whether the statement is true or false
Per-unit transaction costs
a. may cause the demand and supply curves to shift either inward or outward depending on the value obtained from transaction agents. b. refer only to the commission paid to a third party for each transaction made. c. are absorbed by the party seeking the transaction. d. have the same effect on behavior as do lump-sum transaction costs; the difference in terminology is purely definitional.