In the Iowa Gambling task, scientists have found that on average, subjects are a
ID: 1101095 • Letter: I
Question
In the Iowa Gambling task, scientists have found that on average, subjects are able to articulate why they stopped drawing cards from unfavorable decks after drawing? A) 5 cards B) 10cards C) 50 cards D) 60 cards
Consumers ability to purchase a good or service is limited by: A) their income only B) the prices for the goods or service only C)their preferences D) both the prices and their income
Suppose that your firms marginal cost of producing a pencil is 5 cents and the average cost of producing a pencil is 3 cents if your firm is interested in minimizing average total costs, what should your firm do A)Maintain production at the current level B) Look fir ways to increase fixed costs C) increase production D) Decrease Production
Suppose that a price discriminating monopolist is able to divide its market into two groups. If the firm sells its product for $25 to the group whose customers have the least elastic demand, what price are they likely to charge to the group whose customers have the most elastic demand?
A) $25 B) less than $25 C) more than $25 D) the answer depends on the marginal revenue for that group.
A firm announces that it will refund the difference between its price and any price of a competitor that is lower. That is an example of
A) Marginal cost pricing B) guaranteed price matching C) predatory pricing D) trying contracting
Explanation / Answer
C ; 50 cards D ; both the prices and their income D ; Decrease Production B ; less than $25 B ; guaranteed price matching