Suppose That Firms a and B Each Produce High-Resolution Computer

question 92

Multiple Choice

Suppose that Firms A and B each produce high-resolution computer monitors,but Firm A can do so at a lower cost.Cassie and David each want to purchase a high-resolution computer monitor,but David is willing to pay more than Cassie.If Firm A produces a monitor that Cassie buys but David does not,then the market outcome illustrates which of the following principles?
(i)
Free markets allocate the supply of goods to the buyers who value them most highly,as measured by their willingness to pay.
(ii)
Free markets allocate the demand for goods to the sellers who can produce them at the least cost.

• A)(i)only
• B)(ii)only
• C)both (i)and (ii)
• D)neither (i)nor (ii)

Discuss the importance of relationship development with constituencies and negotiation parties.

Understand how concerns about reputations influence negotiator behavior.

Evaluate factors affecting the effectiveness of communication through audiences.

Understand the key factors that build trust in relationships and negotiations.

---

Definitions:

Discriminative Stimulus

In operant conditioning, a stimulus that indicates that reinforcement is available.

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying behavioral conditioning in animals, typically involving a lever they press to receive a reward.

Green Light

In general use, to give permission or approval to proceed with a project, idea, or situation.

General Adaptation

General adaptation refers to an organism's response to stressors in its environment in an attempt to restore homeostasis.