Author Question: Rational inattention refers to ________. A) the risk a firm runs when they do not pay attention ... (Read 252 times)

Chloeellawright

  • Hero Member
  • *****
  • Posts: 588
Rational inattention refers to ________.
 
  A) the risk a firm runs when they do not pay attention to their customers
  B) firms making infrequent price decisions because of the time and effort those decision require
  C) the cost to the firm of losing sales from alienating customers
  D) all of the above
  E) none of the above

Question 2

Proportional income taxation is distorting because
 
  A) people do all they can to avoid paying taxes.
  B) the competitive equilibrium is not Pareto optimal.
  C) firms do all they can to avoid paying taxes.
  D) the government budget constraint does not hold.



k2629

  • Sr. Member
  • ****
  • Posts: 357
Answer to Question 1

B

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

For a complete list of videos, visit our video library