Elly needs to get her leaking faucet repaired as soon as possible. She gets in touch with a plumber who asks for an unreasonably high fee. If no other plumber is available for work, who has a higher bargaining power? Explain your answer
What will be an ideal response?
Bargaining power describes the relative power an individual has in negotiations with another individual. Two principles—the cost of failing to come to an agreement and the influence of one partner on the other—are generally used to describe the bargaining power of each partner engaged in bargaining. If the influence of one agent over the other agent increases, then the former's bargaining power increases, but if the cost of not coming to an agreement increases, then his bargaining power goes down. In this case, the cost of failing to come to an agreement is high for Elly because no other plumber is available for work. Therefore, the plumber has a higher bargaining power.
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No monetary value can be placed on a human life
Indicate whether the statement is true or false
Opportunistic behavior by oligopolies means
A) that firms cooperate in both the long run and in the short run to prevent others from entering the industry. B) that firms cooperate in the short run for current gains. C) that firms refuse to cooperate in the short run. D) that firms refuse to honor their product guarantees.
The formulae for the AIC and the BIC are different. The
A) AIC is preferred because it is easier to calculate B) BIC is preferred because it is a consistent estimator of the lag length C) difference is irrelevant in practice since both information criteria lead to the same conclusion D) AIC will typically underestimate p with non-zero probability
Refer to the information provided in Figure 33.2 below to answer the question(s) that follow.
Figure 33.2Refer to Figure 33.2. England has an absolute advantage in producing
A. trucks. B. neither cars nor trucks. C. both cars and trucks. D. cars.