Suppose a town can earn an additional $10,000 per year in revenue if it installs a red-light camera at its busiest intersection. At what additional cost would installing this camera not be considered economically rational?
What will be an ideal response?
If the additional cost of the red-light camera exceeds $10,000 per year, the decision would not be economically rational.
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Sample selection bias occurs when
A) the choice between two samples is made by the researcher. B) data are collected from a population by simple random sampling. C) samples are chosen to be small rather than large. D) the availability of the data is influenced by a selection process that is related to the value of the dependent variable.
Which one of the following statements about deflation is false?
a. Deflation is good for lenders. b. Deflation is bad for borrowers. c. Deflation boosts people's real incomes. d. Deflation raises the burden of carrying debt. e. During the last half of the 20th century, the U.S. economy has experienced deflation for more years than it experienced inflation.
Economists assume the central goal of any business is to:
A. minimize costs. B. maximize market share. C. maximize profit. D. maximize revenues.
If a sum of $15,000 is borrowed at 13% for a year, the interest paid by the borrower is ________
A) $750 B) $1,000 C) $1,950 D) $5,500