The host at a party offers Justin a sixth beer. Justin says, "No thanks, man. The marginal utility of that fifth beer was, like, 20 cents, but the marginal utility of the sixth would be minus 10 cents." From his comments, we deduce that Justin
a. is an alcoholic.
b. may think that a sixth beer would make him sick.
c. is irrational.
d. wrongly estimates the marginal utility of the fifth beer.
b
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When considering the socially optimal amount of pollution, the benevolent social planner takes into account any laws regarding pollution
Indicate whether the statement is true or false
Why might firms pay wages that are above the equilibrium wage in a market?
A) to reduce the unemployment rate B) to encourage workers to form labor unions C) to increase the productivity of their workers D) to reduce profit
Exceptions to the prohibition against cartels exist for which of the following?
a. ocean shipping rates b. various agricultural products such as milk and oranges c. transoceanic airline routes d. cardboard box manufacturers e. a through c f. a through d
The reason we study the sequential labor negotiation game:
a. Is to show that these games usually go on for rounds and rounds b. Is to show the importance of the first mover being able to commit to an offer c. Is to show the importance of the second mover being able to commit to an offer d. Is to show the problems of prisoners dilemmas