According to a behavioral economist, people who are unwilling to sell the last pound of rice they purchased for the same price that they paid for it are displaying ________
A) the endowment effect
B) bounded rationality
C) bounded self-interest
D) bounded will power
A
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In analyzing the decision to shut down in the short run we assume that the firm's fixed costs are
A) nonmonetary opportunity costs. B) sunk costs. C) implicit costs. D) capital costs.
Which of the following factors of production is not variable in the long run?
a. the size of the firm's plant. b. property taxes on the assets of the firm. c. highly trained labor. d. All factors of production are variable in the long run.
Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. What is the profit-maximizing sales quantity for baseball gloves?
A. 10 B. 20 C. 30 D. 60
Economists emphasize the importance of ____ in analyzing demand
a. quantity b. market potential c. wants and needs d. price e. sales opportunities