Economists have used the ultimatum game and the dictator game in experiments designed to determine a. whether consumers believe
it is fair for producers to raise the price of a product for which there is excess demand. b. whether consumers care about fairness when they make decisions. c. whether consumers understand the difference between implicit costs and explicit costs. d. whether consumers understand the rule of equal marginal utility per dollar spent.
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.
If a corporation pays $3 per share in annual dividends for each of the ten shares you purchase for $50 each then the ROI is 2$.
<h3>How is ROI calculated?</h3>
An investment's return on investment (ROI) provides a general indication of its profitability. In order to calculate ROI, subtract the investment's initial cost from its final value, divide the result by the cost of the investment, and then multiply the result by 100.
<h3>What Constitutes a Solid ROI?</h3>
For an investment in stocks, a yearly ROI of 7% or more is typically regarded as a respectable ROI. This also refers to the average annual return of the S&P 500 after accounting for inflation.
The three primary characteristics of perfect competition are (1) no company holds a substantial market share, (2) the industry output is standardized, and (3) there is freedom of entry and exit. The efficient market equilibrium in a perfect competition is where marginal revenue equals marginal cost.
