If Sam sells his product for $10 per unit net of costs and just breaks even after transporting it 5 miles to the market, Susan, who lives only 2 miles from the market will
a. experience lower profits
b. earn a location rent
c. find it profitable to purchase Sam's land
d. derive a consumer's surplus
e. none of the above
B
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The reason we study the non-strategic sequential labor negotiation game:
a. Is to show that these games usually go on for many rounds b. Is to show the importance of the first mover being able to commit to an offer c. Is to show the importance of the second mover being able to commit to an offer d. Is to show the irrelevance of mover position, given that he is able to commit to a position
"A reduction in the rate at which stock dividends are taxed will lead to greater investment in the stock market." This is an example of: a. a positive economic statement
b. a negative economic statement. c. the fallacy of composition. d. a normative economic statement.