Which of the following is an example of money left on the sidewalk?
a. Overconfident small investors making poor stock-trading choices and failing to learn from experience.
b. A guitarist buying a high end model of a Fender Stratocaster when a low end version is available in the market.
c. A librarian purchasing the latest editions of several social science books.
d. A cancer patient insisting on getting treated at an expensive clinic instead of a general hospital.
A
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The law of diminishing marginal utility explains why an individual's demand curve is elastic
a. True b. False
Featherbedding ultimately results in greater worker efficiency and therefore greater productivity and higher wages
a. True b. False
Using only marginal revenue and marginal cost, we can determine whether a firm is incurring a profit or a loss
a. True b. False Indicate whether the statement is true or false
Suppose a consumer has preferences over two goods, X and Y, which are perfect substitutes. In particular, two units of X is equivalent to one unit of Y. If the price of X is $1, the price of Y is $3, and the consumer has $30 of income to allocate to these two goods, how much of each good should the consumer purchase to maximize satisfaction?
a. 30 units of X and 0 units of Y b. 0 units of X and 10 units of Y c. 15 units of X and 5 units of Y d. 15 units of X and 0 units of Y