Differentiate between norms and focal points
The mutually understood customs the parties to a negotiation follow from experience are known as norms. A focal point is a clear standard that people use to coordinate their activities. Norms and focal points can both lower the costs of negotiation and leave fewer benefits to go unrealized by the bargainers.
Economics
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Average productivity will fall as long as
A) marginal productivity is falling. B) it exceeds marginal productivity. C) it is less than marginal productivity. D) the number of workers is increasing.
Economics
The production possibilities frontier represents all desirable combinations of outputs
a. True b. False
Economics