Author Question: If marginal revenue exceeds marginal costs A) production should be increased. B) production should ... (Read 108 times)

cabate · **on:** Jun 30, 2018

If marginal revenue exceeds marginal costs
A) production should be increased.
B) production should be increased and profits will grow.
C) production should be increased and losses will decrease.
D) all of these choices are possible.

Question 2

Differentiate between norms and focal points.

IRincones · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

D

Answer to Question 2

The mutually understood customs the parties to a negotiation follow from experience are known as norms. A focal point is a clear standard that people use to coordinate their activities. Norms and focal points can both lower the costs of negotiation and leave fewer benefits to go unrealized by the bargainers.