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galben [10]
2 years ago
14

Economists have used the ultimatum game and the dictator game in experiments designed to determine whether consumers believe it

is fair for producers to raise the price of a product for which there is excess demand. whether consumers care about fairness when they make decisions. whether consumers understand the rule of equal marginal utility per dollar spent. whether consumers understand the difference between implicit costs and explicit costs.
Business
1 answer:
Kruka [31]2 years ago
6 0

Answer: Option (b) is correct.

Explanation:

Correct option: Whether consumers care about fairness when they make decisions.

The Ultimatum game and the dictator game economists generally used to know the fairness and the economic behavior of the consumers.

The dictator game is a derivative of the ultimatum game.

From these two games it was seen that consumers firstly thinks about their own payoff and split the amount in an unequal ratio.

In the ultimatum game, a sum of money will be given to a person and asked him to split the amount with the other person. If the other person accepts his offer then they both get the decided amount and if the other person rejects his offer then they both get nothing.

This gives us the consumers preferences, economic behavior or whether they care about the fairness or not.

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Collins, Inc. issued a nontaxable stock dividend of one share for each share owned. Melissa, a shareholder of Collins, had a tot
DiKsa [7]

Answer:

$5,000

Explanation:

Based on the information given we were told that had a total basis in her 500 shares of stock of the amount of $5,000 which means that The total basis of Melissa's 1,000 shares of stock after the dividend is $5,000 which is her total basis in her 500 shares of stock.

7 0
3 years ago
SmartTalk, Inc, makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, t
Iteru [2.4K]

Answer:

D) an ineffective marketing plan.

Explanation:

Product liability is defined as the liability that manufacturer bears when he puts defective product in the hands of the consumer.

Manufacturers are liable for damages that occur from the use of their products. They are also responsible for providing adequate instructions on use of the product and warning of adverse effects a user can experience.

SmartTalk, Inc produces cell phones and related accessories. They have product liability when there is a manufacturing defect, design defect, and inadequate warning on use of the product.

However the company does not have product liability for ineffective marketing as this is related to how well the company sells the product and not if the product is defective.

5 0
3 years ago
Trevor always begins the day with a strawberry milkshake (milk (x1 ) and strawberries(x2) mixed in proportion 1:5). His income i
jenyasd209 [6]

Answer:

Check the explanation

Explanation:

Going by the question that the proportion of milk and strawberry for milk shake is 1:5.

If amount of milk is to be X1 that means the quantity of strawberry (X2) will be 5×X1, i.e., X2=5X1... Equation 1

And in addition, the milk and strawberry are complementary consumables as strawberry is of no use without milk and vice versa.

Budget equation will be as follows:

P1×X1+P2×5X1=M.... Equation 2

Given M=200, P1=15 & P2=1

Putting values in Equation 2

15×X1+1×5X1=200

X1=10 & X2=50(from equation 1)

Answer a)

With change in P1 from 15 to 5

Again putting values in Equation 2

5×X1+1×5X1=200

X1=20 & X2=100.

The total change in the demand of milk will increase from 10 units to 20 units.

Answer b)

Strawberry and milk are complementary goods here for that reason there would be no effect on substitution.

Answer c)

Since there will be no effect on substitution, total effect will be equal to income effect.

7 0
3 years ago
A property that produces a first year NOI of $80,000 is purchased for $750,000. The NOI is expected stay constant through year 5
PIT_PIT [208]

Answer: $115998

Explanation:

Based on the information given, we can calculate the NOI from the 6th year which will be:

= $80,000 × (100% + 15%)

= $80,000 × 115%

= $80,000 × 1.15

= $92,000

Therefore, the net present value of the property based on the 10-year holding period and a discount rate of 9.5% will be:

= 80000(PVAF, 5 year) + 92000[PVAF,(10-5),9.5%] + 830000/(1.095)10-750000

= (80000 × 3.839) + (92000 × 2.439) + (830000 × 0.403) - 750000

= 307120 + 224388 + 334490 - 750000

= 865998 - 750000

= $115998

Therefore, the net present value is $115998

4 0
2 years ago
When workers are asked to participate in a research study, vulnerabilities related to the subject's employment may include:
ss7ja [257]

Answer:

e. All of the above

Explanation:

All options are possible certainly. The unions have the right to ask the employees to participate with the expectation that entitlement may follow from the study results. The study results are certainly going to ensure entitlement. Also, the employer might encourage or deny the participation of the workers as this is management work. It is on the employer that he allows or denies the employee from taking part in the meeting. Also, the employee might be pressurized by the management to take part in the study as the employer perceives the study are advantageous to the organization. This is a certainty as well, an employer might see profit in this. And the studies will affect the employee's pay, benefits as well as the promotion potential. The meeting is certainly going to increase employee's pay as well as provide him various benefits, and there are chances of promotion as well. Hence, all the options are correct.

5 0
2 years ago
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