The Kahneman-Tversky value function is
A. risk-averse in gains and losses.
B. risk-neutral in gains and losses.
C. risk-averse in gains, risk-seeking in losses.
D. risk-seeking in gains, risk-averse in losses.
Answer: C
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A wheat farmer and a firm in a perfectly competitive market are similar in that
A) both will earn an economic profit if their total revenue equals their total cost. B) both face vertical demand curves. C) both have to lower their prices if a rival firm lowers its price. D) both face horizontal demand curves.
The first important law regulating monopolies in the United States was
A) the Clayton Act, which was passed in 1890. B) the Sherman Act, which was passed in 1890. C) the Grant Act, which was passed in 1890. D) the Federal Trade Commission Act, which was passed in 1914.