The "right" price depends on one factor — the value that it provides for customers

Which of the following is the most important constraint on the explanatory power of the IO paradigm?

A) Many industries are imperfectly competitive. B) Many companies are locally but not internationally competitive. C) Most customers have perfect knowledge of the products they select. D) Most industries have many firms that each have small market shares.

Minnesota has a statewide smoking ban for public places. However, the state statute includes an exemption that permits smoking by actors in theatrical performances. In order to take advantage of the exemption, the Old Clover Inn, located in Vadnais Heights, Minnesota, has begun holding theater night, every night. The Old Clover Inn has placed its pool tables in an area that is framed with theater

curtains and refers to the pool players as its actors. The Inn also has a stage for its cribbage players who sit and play cribbage and smoke. The Inn calls the nightly production, "As the Clover Turned," and it distributes a playbill that describes the nightly plays as involving "numerous uncredited actors in the role of bar patrons.". The Inn distributes buttons for $1 to patrons. The buttons read, "Act Now!" The Minnesota Health Department has warned the Inn that what it is doing is an attempt to circumvent the law. Which statement best describes the Old Clover Inn's approach to ethics? a. Old Clover Inn acts in a socially responsible manner, going above the requirements of the law in running a business. b. Old Clover Inn has found a perfectly legal way of doing business and compliance with the law is one standard for ethics. c. Old Clover Inn believes that ethics requires doing more than the law requires and less than the law allows. d. None of the above