The expected marginal benefit to you from purchasing a new sport utility vehicle is $20,000 . The price of the new sport utility vehicle is $22,000.
a. If you are acting rationally, you will borrow $2,000 and purchase a new sport utility vehicle
b. You will not purchase the new sport utility vehicle at this time if you are acting rationally.
c. If you do not purchase the new sport utility vehicle, your net loss will be $2,000.
d. If you are acting rationally, you will purchase sport utility vehicles until the marginal cost of doing so falls to $20,000.
b
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Which of the following is NOT true about dead capital?
A) Companies will be less likely to want to invest when a country has a lot of dead capital. B) Dead capital can inhibit economic growth. C) Dead capital will lead to higher investment returns. D) Dead capital can lead to a situation where resources are not efficiently employed.
As the information technology advances and consumers buy products requiring more and more technology, the wages of people with high level programming and other technical skills would
If domestic savings is less than domestic investment, then
A) reserve assets will increase. B) the government runs a budget deficit. C) there will be negative foreign investment. D) a trade surplus must result.
Refer to the above figure. Which panel is consistent with the Laffer curve?
A. Panel A B. Panel B C. Panel C D. Panel D