The Ultimatum Game Reveals That

question 152

Multiple Choice

The ultimatum game reveals that

• A)it does not make sense to try to maximize profits.
• B)people may have an innate sense of fairness that economic theory does not capture.
• C)offering someone a wildly unfair outcome is usually ok since people tend to make decisions using a "something is better than nothing" philosophy.
• D)Both a and b.

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Definitions:

Revenue Curves

Graphical representations showing the relationship between different levels of output or sales and the total revenue earned by a company.

Inelastic

Describing demand or supply that is relatively unresponsive to changes in price, meaning the quantity demanded or supplied changes by a smaller percentage than the change in price.

Output Level

The quantity of goods or services produced by a business or economy during a specific period.

Revenue Curves

Graphical representations that show how a firm's revenue changes in response to changes in price, holding other factors constant.