Comment on the following statement: "I decided to buy a car from a dealer in a town 100 miles away because he was offering a price that was $100 lower than the dealer in my hometown. Therefore, I saved $100"
What will be an ideal response?
Assuming that the individual had no other reason to travel the 100 miles, the savings from the purchase of the car is less than $100 . Travel costs should be taken into account, including the opportunity cost of time.
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If the U.S. dollar was worth 0.8 euros, and the dollar appreciated, it might now be worth:
A. 0.7 euros. B. 0.9 euros. C. 0.8 euros. D. None of these statements is possible.
Peak-load pricing is often referred to as full cost pricing
Indicate whether the statement is true or false
Figure 3-20
Refer to . If 110 units of the good are being bought and sold, then
a.
the cost to sellers is equal to the value to buyers.
b.
the value to buyers is greater than the cost to sellers.
c.
the cost to sellers is greater than the value to buyers.
d.
producer surplus is greater than consumer surplus.
If the MPC is 0.95 and the MPM is 0.05, the open economy multiplier is 10.
Answer the following statement true (T) or false (F)