Author Question: Esther wants to buy a used car from her neighbor, who quotes a price of 18,000. Esther negotiates ... (Read 99 times)

deesands · **on:** Jun 29, 2018

Esther wants to buy a used car from her neighbor, who quotes a price of 18,000. Esther negotiates with her neighbor and offers him 16,500 for the car. This is an example of ________.

A) bilateral bargaining
B) collective bargaining
C) arbitration
D) speculation

Question 2

A monopolistic competitor earns zero economic profits if ________.

A) price is higher than average total cost
B) price is lower than marginal cost
C) price is equal to marginal cost
D) price is equal to average total cost