Author Question: Jane is trying to decide which courses to take next semester. She has narrowed down her choice to ... (Read 52 times)

dbose · **on:** Jul 1, 2018

Jane is trying to decide which courses to take next semester. She has narrowed down her choice to two courses, Econ 1 and Econ 2. Now she is having trouble and cannot decide which of the two courses to take.

It's not that she is indifferent between the two courses, she just cannot decide. An economist would say that this is an example of preferences that: A) are not transitive.
B) are incomplete.
C) violate the assumption that more is preferred to less.
D) all of the above

Question 2

Suppose you are in charge of product pricing and marketing strategy for a pharmaceutical company. You will have greater ability to independently set prices for your product if:

A) there are no close substitutes for your product.
B) there are lots of other firms selling closely related products in your market.
C) your market is perfectly competitive.
D) none of the above