If you got a birthday gift of a $100 U.S. savings bond, you would have received

In developing prospect theory, which of the following did behavioral economists not discover about people's reaction to goods and bads?

A. People feel equivalent losses and gains in equal measure, supporting the assumption that consumers behave rationally. B. People are generally loss averse, feeling losses more intensely than gains. C. People judge good and bad outcomes relative to the status quo. D. People experience both diminishing marginal utility from gains and diminishing marginal disutility from losses.

A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at which

A) MFC = MRPm. B) a perfectly elastic labor supply = MRP. C) a perfectly inelastic labor supply = perfectly inelastic labor demand. D) where supply of labor = demand for labor.