1 answer

12) Which of the following scenarios describes an action that is NOT rational from an economic point of view? A)

Question:

12) Which of the following scenarios describes an action that is NOT rational from an economic point of view?

A)         After drinking one martini, James buys and drinks a second martini even though the marginal benefit of the second martini is lower than the marginal benefit of the first.

B)         Eric buys a replacement ticket to the basketball game after he realizes that he accidentally left his original ticket at home.

C)         Emily chooses to attend a social event on Tuesday night instead of studying even though she has an important exam on Wednesday morning.

D)         US Airways sells a last-minute ticket to Don for $50 even though its average cost per passenger is $250.

E)         None of the above


Answers

Answer

Option E

E)         None of the above

The marginal benefit from the next unit decreases but the consumption goes on up to full satisfaction.

Eric wanted to watch the game and brought the replacement ticket is rational.

Emily choose to go to a social event is her rational choice

The last ticket has no marginal cost so the ticket selling below ATC is not the concern, profit is maximum at MR=MC and MC=0 for the passenger at last minute.

.

Similar Solved Questions

1 answer
A company's December 31 work sheet for the current period appears below. Based on the information...
A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period? Unadjusted Trial Balance Adjustments Credit Debit Credit Debit Cash 2,105 Accounts receivable 1,130 1,005 Prepaid insurance Supplies Equipment Ac...
1 answer
An athlete signs a contract that guarantees a $12 million salary 7 yr from now. Assuming that mon...
An athlete signs a contract that guarantees a $12 million salary 7 yr from now. Assuming that money can be invested at 6.2 % with interest compounded continuously, what is the present value of that year's salary? ROUND TO THE NEAREST DOLLAR AMOUNT...
1 answer
Article Review: You are required to review Four (4) articles from any International Journals related to...
Article Review: You are required to review Four (4) articles from any International Journals related to the topic of “Workforce Diversity”. Use the following reporting format to report your findings:  Author and title of the article: for example: Sudhir Venkatesh (2008) “Ga...
1 answer
Question 10 (0.5 points) What is the product of the following reaction? OOH D esde Оа)...
Question 10 (0.5 points) What is the product of the following reaction? OOH D esde Оа) с Ob D Ос) Е O d) A Оe) в...
1 answer
00 T3-EOY-MAT70 3-13 53:03 Find the area between the two curves on the given interval y...
00 T3-EOY-MAT70 3-13 53:03 Find the area between the two curves on the given interval y = cos x, y = x2 +2,05 x 52. (in radians) (round to 3 decimal places) 6 5 4 3 -2 a 15 KORTE BESTCOTECTION FOR YOU F7 F8 F9 F10 F11 F12 PRT...
1 answer
2.4 On an axis a wheel with radius R is fixed to a smaller wheel with...
2.4 On an axis a wheel with radius R is fixed to a smaller wheel with radius r. The forces F and f are tangentially applied to the contours of both wheels (as shown in the figure). Calculate the ratio between the forces F and f in the case where the total moment with respect to the centroid P is zer...
1 answer
A small 0.270-kg object moves on a frictionless horizontal table in a circular path of radius...
A small 0.270-kg object moves on a frictionless horizontal table in a circular path of radius 1.70 m. The angular speed is 9.60 rad/s. The object is attached to a string of negligible mass that passes through a small hole in the table at the center of the circle. Someone under the table begins to pu...
1 answer
I know the output of the program I just want help with the logic of figuring...
I know the output of the program I just want help with the logic of figuring out the output a step by step processes of how to get to the output. thank you this is for my study guide please include step by step processes of how to reach output thank you. #include <iostream> using namespace ...
1 answer
Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 5.0% rate...
Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 5.0% rate of inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 7.0%. Mudd has a beta of 1.8, and its realized rate of return has averaged 8.5% over the past 5 years. Rou...
1 answer
Based on Best Buy SWOT Analysis, describe in detail two Business Strategic Alternatives and two Corporate...
Based on Best Buy SWOT Analysis, describe in detail two Business Strategic Alternatives and two Corporate Strategic Alternatives. For each of the alternatives, give specifics of what your alternative propose is and the justifications of your proposed alternatives. Strengths Good reputation with cu...
1 answer
Expectation of xext ? E[xe^(tx)] = some series? for example E[e^(tx)] = 1 + tx +...
Expectation of xext ? E[xe^(tx)] = some series? for example E[e^(tx)] = 1 + tx + (t2x2)/2! + (t3x3)/3! + ........
1 answer
What does it generally mean when you have a RR=1, RR<1or a RR>1 • If you...
What does it generally mean when you have a RR=1, RR<1or a RR>1 • If you are confused look at the hormone replacement therapy abstracts. What did Grodstein et al. conclude and was their RR equal to, less than or greater than 1? What did the Women’s Health Initiative (WHI) study find...
1 answer
Envelope 10a. Briefly state why loudspeakers for high frequencies (treble) are small, whereas for low frequencies...
Envelope 10a. Briefly state why loudspeakers for high frequencies (treble) are small, whereas for low frequencies (bass) are large. b. If an input signal into an amplifier is amplified too much (i.e., saturated), its amplitudes will be clipped, as shown below. This will lead to what is referred to a...
1 answer
13-7.VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional fee-for-service model...
13-7.VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional fee-for-service model that determines the payment according to the actual services used or costs incurred, VIP-MD receives a fixed, prepaid amount from subscribers. The per member, per month rate...
2 answers
Find the equation of a line parallel to #2x+5y=3# and passing through #(2,-3)#?
Find the equation of a line parallel to #2x+5y=3# and passing through #(2,-3)#?...
1 answer
Fill in the yellow shaded area with the formulas only please. A1 fix Given the following...
fill in the yellow shaded area with the formulas only please. A1 fix Given the following information complete a CVP analysis D E А B c С 1 Given the following information complete a CVR analysis 2 for JPL, Inc.: 3 4 Unit sales 11,200 units 5 Selling price per unit $75 per unit 6 Vari...
1 answer
9. Use the Lagrange Multiplier to find the relative extreme value of f(x,y) = 2x2 +...
9. Use the Lagrange Multiplier to find the relative extreme value of f(x,y) = 2x2 + 3y2 - 2xy constrained by: 2x + y = 18 {Use a table to determ F(x, y, 2) = Ans: Min: (7,4,90)...