When it comes to enacting policy changes, loss aversion often leads to status quo bias because:
A. the resistance from those who stand to lose from the policy often overwhelms the support from those who stand to gain.
B. people's estimates of their gains from the policy are often too large.
C. people's estimate of their losses from the policy are often too small.
D. the support from those who stand to gain from the policy often overwhelms the resistance from those who stand to lose.
Answer: A
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In the case of pure monopoly:
a. one firm is the sole producer of a good or service which has no close substitutes b. the firm's profit is maximized at the price and output combination where marginal cost equals marginal revenue c. the demand curve is always elastic d. a and b only e. a, b, and c
Which, if any, of the present values below are computed correctly?
a. A payment of $100 to be received one year from today, with a 2 percent interest rate, has a present value of $98.81. b. A payment of $200 to be received two years from today, with a 3 percent interest rate, has a present value of $188.52. c. A payment of $300 to be received three years from today, with a 4 percent interest rate, has a present value of $234.34. d. None of the above are correct to the nearest cent.
Suppose that the profit maximizing level of output for the monopolist is 100 units, and ATC = $45.00; MC = $35.00; MR = $35.00; P = $60.00. What is the monopoly's profit?
A. $1500 B. -$1000 C. $5000 D. $4500
Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources
Indicate whether the statement is true or false