Author Question: In a survey of consumers, Daniel Kahneman, Jack Knetsch and Richard Thaler asked their opinion of a ... (Read 110 times)

Beheh · **on:** Jun 29, 2018

In a survey of consumers, Daniel Kahneman, Jack Knetsch and Richard Thaler asked their opinion of a hardware store's decision to

A) remain in business even though the store was not making an economic profit; 82 percent of those surveyed believed it would be unfair for the store to go out of business if there were no other hardware stores in the same area.
B) go out of business because a larger hardware store opened in the same city; 82 percent of those surveyed believed it was unfair for the larger store to compete with the smaller store.
C) sell tickets to sporting and cultural events at prices higher than prices paid at the ticket windows for the same events; 82 percent of those surveyed believed this was unfair.
D) raise the price of snow shovels the day following a snowstorm; 82 percent of those surveyed believed this was unfair.

Question 2

Refer to Figure 15-4. What is the profit-maximizing/loss-minimizing output level?

A) 600 units B) 800 units C) 940 units D) 1,160 units