(Figure: Market for Lithotripters) Refer to the Figure

question 32

Multiple Choice

(Figure: Market for Lithotripters) Refer to the figure. Suppose that a German manufacturer can sell its kidney lithotripter in two markets: Country X and Country Y. If this firm is interested in maximizing profits, it should set a price of ________ in Country X and ________ in Country Y.

• A) d; z
• B) b; d
• C) b; z
• D) a; d

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Definitions:

Contrast Error

a bias in evaluating others' performance by overly emphasizing differences between the individual's performance and the group norm, rather than assessing the performance on its own merits.

Absolute Standard

A fixed criterion of measure that remains unchanged over time and under different conditions.

Perception Error

A mistake in interpreting or understanding information received from the environment due to biases, incorrect information, or misinterpretation.

Cross-Cultural Negotiations

The process of discussing and coming to an agreement between parties from different cultural backgrounds.