One Thing That Distinguishes Normative Principles from Positive Principles Is

question 1

Multiple Choice

One thing that distinguishes normative principles from positive principles is that:

• A) normative principles are pessimistic and positive principles are optimistic.
• B) normative principles reflect the social norms of the community, and positive principles reflect universal truths.
• C) normative principles tell us how people should make economic decisions, and positive principles tell us how people actually do make decisions.
• D) normative principles tell us how people actually make economic decisions, and positive principles tell us how people should make decisions.

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Definitions:

Limit Pricing

A competitive strategy where a firm sets the price of its product low enough to discourage new entrants from entering the market.

Technological Advance

The process of developing and implementing new technologies to improve products, services, or processes, driving economic growth and efficiency.

First-Mover Advantage

The competitive advantage gained by the initial significant occupant of a market segment, allowing for the establishment of strong brand recognition and customer loyalty before rivals enter the market.

Simultaneous Game

refers to a strategic game where all players make their decisions at the same time, without knowledge of the others' choices.