Nike has used Michael Jordan to create the impression that Air Jordan basketball shoes are superior to any other basketball shoes. Nike is attempting to
A) differentiate Air Jordan basketball shoes from other types of basketball shoes.
B) convince consumers that Air Jordan basketball shoes are no different from other basketball shoes favored by celebrities.
C) lower the marginal cost of producing Air Jordan basketball shoes.
D) increase its profit by raising the price of Air Jordan basketball shoes.
Question 2
A construction project in Congressman Foghorn's district is unfinished. Foghorn has asked that a new appropriations bill include funds to complete the project, despite a report by an independent agency that the project is a waste of taxpayer money.
Foghorn's project is a bridge that crosses a river between two cities in his district. The press has criticized Foghorn and dubbed the project a bridge too far since another bridge, located closer to the same two cities Foghorn's bridge will connect, already exists and can accommodate all traffic between the two cities. Foghorn argues that if the bridge project is not completed, the 50 million already spent will have been wasted. Is Foghorn's argument economically rational? Explain your answer.
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