Drive with Us Is an Automobile Retailer and Pays Floor

question 110

Multiple Choice

Drive with Us is an automobile retailer and pays floor plan financing to finance the cars they hold in inventory. If the interest rate on their floor plan financing decreases from 5 to 3 percent, Drive with Us's expected marginal cost from holding additional cars in inventory will shift _______and the profit- maximizing number of cars to hold in inventory will _______.

• A)upward; increase
• B)downward; increase
• C)downward; decrease
• D)upward; decrease

Apply concepts of distributive and procedural justice, and equality and equity norms to understand reactions to resource distribution.

Assess the role of communication in conflict resolution and the conditions under which it can be effective.

Describe theories such as Heider's balance theory and the dual concerns model in relation to conflict dynamics and resolution strategies.

Understand the escalation and resolution pathways of conflicts.

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Definitions:

Superior

In economics, refers to a good for which demand increases as consumer incomes increase, opposite of an inferior good.

Player

An individual, group, or entity participating in a competitive or cooperative activity, often used in the context of games, sports, or market participants.

Negative-sum Games

Situations in which the total losses exceed the total gains, leading to a net decrease in wealth or benefit.

Incentive

A thing that motivates or encourages someone to do something, particularly in economic contexts to influence behaviors.