Prospect theory implies that individuals are risk loving over losses and risk averse over gains.
Answer the following statement true (T) or false (F)
True
Rationale: Diminishing sensitivity from the reference point implies concavity of the utility/consumption relationship above the reference point and convexity below the reference point.
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When federal government spending exceeds tax revenues, the federal government runs a budget surplus
Indicate whether the statement is true or false
Jeong's uncompensated demand for gizmos is given by Q = 30 - 2p. Jeong's marginal willingness to pay function is
A) 30-2p. B) 15-.5Q. C) 30-2Q. D) -2.
Rivalry among firms would tend to be high if
a. Customers are locked into the competitors technology b. Customers can easily switch between competitor's technologies c. All of the above d. None of the above
A cartel:
a. is a group of firms formally agreeing to control the price and the output of a product. b. has as its primary goal to reap monopoly profits by replacing competition with cooperation. c. is illegal in the United States, but not in other nations. d. all of these.