Gene Plays Another Hour of Computer Games Rather Than Study

question 206

Multiple Choice

Gene plays another hour of computer games rather than study for the hour even though he knows that the next day, when he takes his test, he will regret his decision. Gene is showing

• A) the endowment effect.
• B) bounded rationality.
• C) bounded self-interest.
• D) bounded will power.

---

Definitions:

Firm

An organization that produces goods or services in order to generate profit, typically within an economic system.

Third-Degree Price Discrimination

A pricing strategy where different groups of consumers are charged different prices based on attributes like age, location, or income, aiming to maximize profits by exploiting varying demand elasticities.

Inelastic Demand Functions

Demand functions that represent situations where the quantity demanded of a good or service changes very little in response to changes in its price.

Monopolist

An individual or entity that is the sole provider of a particular product or service in a market, enabling control over prices.