Firms that exhibit price-taking behavior
A) wait for other firms to set price, take it as given, and charge a higher price.
B) have outputs that are too small to influence market price and thus take it as given.
C) take pricing behavior in their own hands.
D) are independently capable of setting price.
B
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Game theory is the:
a. branch of economics that looks at political motives. b. branch of economics that looks at psychological motives. c. science of designing effective product differentiation. d. study of behavior in situations of interdependence.
According to work by Amartya Sen, the best way from a society's point of view to deal with inalienable rights is to:
A. sell them when the marginal benefit exceeds the marginal cost. B. tax their sale to raise revenue since demand for them is inelastic. C. disallow any markets for their exchange. D. purchase them when the marginal benefit exceeds the marginal cost.