Refer to the scenario above. Suppose Pat can impose a fine of $70 if Joe chooses to keep the money and the cost of imposing such a fine to Pat is $10. Which of the following is likely to happen if Pat is known to be vengeful?
A) Joe will choose to split the money into two parts if Pat gives it to him.
B) Joe will choose to keep the entire money for himself if Pat gives it to him.
C) Pat will not give the money to Joe.
D) An unique equilibrium will not occur.
A
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Which sum of money most adequately represents the value someone places on the works of Shakespeare? The sum they would be willing to pay to
A) purchase a set of Shakespeare's complete works. B) purchase a set of Shakespeare's complete works if they did not already own a set. C) purchase a set of Shakespeare's complete works if they did not have ready access to a set. D) purchase a set of Shakespeare's complete works if they had no other way to obtain access to the complete works. E) purchase a set of Shakespeare's complete works if they had no other way to obtain copies of any of them to read.
In the figure above, an increase in the supply of oil would result in a movement from
A) point a to point e. B) point a to point b. C) point a to point c. D) point a to point d.