The Firm's Over-Riding Objective Is to

question 161

Multiple Choice

The firm's over-riding objective is to

• A) earn a normal profit.
• B) maximize normal profit.
• C) maximize economic profit.
• D) maximize total revenue.
• E) avoid an economic loss.

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Definitions:

Ultimatum Game

A game in economic experiments where one player proposes a division of resources, and the other can accept or reject it.

Dictator/Proposer

In game theory, a player who has the power to propose the division of a resource or goods, often in a bargaining or allocation scenario.

Behavioral Economists

Study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical economic theory.

Dictator Game

An experimental game in economics where one player, the "dictator," determines how to split a sum of money between themselves and another player.