A firm's demand for labor depends on, in part, the demand for the firm's product. To summarize this idea, economists say that the demand for labor is:

"Government failure" exists when political decision-makers choose actions that

a. seek efficient outcomes rather than fair outcomes. b. seek fair outcomes rather than efficient outcomes. c. conflict with efficient allocation of resources. d. conflict with the outcome favored by the majority of voters.

Answer the following statement(s) true (T) or false (F)

1. The Robinson-Patman Act was designed to stop resale price maintenance. 2. It is possible for a firm engaging in predatory pricing to make a profit on the good even thought the price is set artificially low. 3. It is possible to avoid the prisoners' dilemma as long as the interaction is repeated and has a definite ending date. 4. Fair trade refers to the fact that retailers are free to set their price in the absence of resale price maintenance. 5. An attorney that finds a loophole in a law has formed a creative response to the law.