The empirical evidence in the ultimatum bargaining games shows that people often reject offers that are smaller than $2 out of a $10 endowment. This behavior can be explained by (A) the standard economic model of self-interest; (B) altruism; (C) the Charness-Rabin model of altruism and reciprocity; (D) none of the above.

Why is the type of product sold in an industry an important characteristic? a firm that can differentiate its product from that of rivals may be able to charge a higher price for a superior product. a firm that sells intangible goods is usually considered a monopoly. service industries cannot differentiate their products, which makes it easy for new firms to enter the industry. expensive products are usually sold by perfectly competitive firms.