Which of the following is a TRUE statement about the economic assumption of rationality?
A) Individuals who are rational necessarily ignore the interests of others.
B) Individuals generally act as though they are rational.
C) Individual behavior may be irrational but group behavior is always rational.
D) People make decisions as if they are omniscient.
B
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A seller's reservation price is generally equal to:
A. the seller's marginal cost. B. the market price. C. the buyer's reservation price. D. the seller's average cost.
Who organized the Bank of the United States?
A) Alexander Hamilton B) George Washington C) Andrew Jackson D) Woodrow Wilson
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna receives $70 from the auction, she can infer that
a. Both the bidders were high value bidders b. Both the bidders were low value bidders c. One of the bidders was high value, while the other was low value d. All of the above
To sell an extra unit of output, a perfectly competitive firm ________, and an imperfectly competitive firm ________.
A. must hope the market price falls; must lower its price B. must lower its price; must lower its price C. need not alter its price; must lower its price D. need not alter its price; need not alter its price