Question

When jewelry stores ask you to put on the product, or car dealers refer to the prospective vehicle you are considering as "your car", what is this an example of ? Choose the BEST answer.

The Endowment Effect

Time Inconsistency/Myopia

Mental Accounting

Framing Effects

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Question 23.125 pts

Prospect Theory says that you...

Feel the same about losses and gains

Cannot say anything, because prospect theory does not cover this topic

Suffer from losses more than you enjoy equivalent gains

Enjoy gains more than you suffer from equivalent losses

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Question 33.125 pts

Which of the following is NOT an example of a nudge

Telling a customer that they must buy this health product if they want to lose 30 pounds and be healthier

placing the healthy food snacks towards the front of the store where they are most visible

marking the buttons you don't want users to select (although they technically can) in a grey color

labelling the trash can as recycle and landfill

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Question 43.125 pts

What kind of market structure is being used by the majority of companies in the mall

Monopolistic Competition

Monopoly

Pure Competition

Oligopoly

What is true of ALL Firms?

They make pricing decisions by setting MR=MC

They have positive profits in the short run

They have higher costs in the long run than in the short run

The engage in advertising to differentiate themselves from others

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Question 73.125 pts

If Price=$10 when Q=10, VC=$95, TC=$120, then what will the firm do?

It will produce in the short run, but in the long run it may exit if nothing substantively changes

It will produce in both the long and the short run even if nothing in the industry or market changes

It will produce in the long run, but in the short run it will not produce

It will not produce in the short run and in the long run it will exit the industry