Each of the following consumers exhibit behavior that violates one of the basic assumptions of consumer preferences. Identify the assumption that is violated for each individual
? Art says that he can watch 2 movies a week but couldn't be paid to watch another movie after that.
? Alex says that he prefers going to a movie over hiking. He also indicates that he prefers hiking to swimming. Alex then states that he would rather go swimming than go to a movie.
? Alicia says that she prefers hiking to watching a movie but can't determine her preferences for swimming.
Art violates the assumption that consumers desire more of a good to less. Alex's preferences violate transitivity. Alicia violates the completeness assumption.
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The cost of producing one more unit of a good or service is equal to its
A) marginal benefit. B) producer surplus. C) marginal expenditure. D) consumer surplus. E) marginal cost.
Provide three examples of scarcity that illustrate why even the 1,210 billionaires in the world face scarcity
What will be an ideal response?
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. What is the expected value of the payoff in the first game?
A. $4.75 B. $4.50 C. $5.75 D. $5.00
If Crystal gets 140 utils from eating one yogurt, 145 utils from eating two yogurts, and 148 utils from eating three yogurts, then Crystal's total utility is:
A. increasing. B. decreasing. C. decreasing at decreasing rate. D. constant.