A political candidate running in a two-person race is likely to occupy
A) an extreme end of the political spectrum and hope that his or her opponent will gravitate toward the middle so that he or she can then claim that his or her opponent has flip-flopped.
B) the middle of the political spectrum and label his or her opponent as an extremist (either liberal or conservative).
C) a position somewhere between the middle of the political spectrum and an extreme end so that he or she can move either way shortly before the election.
D) one extreme end of the political spectrum early in the race and the other extreme end near the end of the race.
B
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Refer to Figure 1A.2. The slope of the curve
A) is positive. B) is negative. C) is zero. D) changes along the curve.
The use of "most-favored-customer" clauses is an example of
A) incenting members to maintain the cartel, because if they lower the price for one customer, they have to lower it for previous customers as well. B) incenting members to maintain the cartel, because if they raise the price for one customer, they have to raise it for previous customers as well. C) giving customers special perks for purchasing goods from members of the cartel. D) selling higher quality goods and services to favorite customers.