Damian shares a small food truck with his sister. His share of the expenses is $500 per month. He has decided to get his own, newer food truck which he will not have to share with anyone. His expenses for the newer truck are $1,400 per month
Damian is as rational as any other person. As an economics major, you rightly conclude that
A) Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least $900.
B) Damian cannot afford the newer truck and will have to go back to sharing a truck with his sister.
C) Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least $1,400.
D) the cost of having one's own truck outweighs the benefits.
A
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Which of the following items is not one of the key functions of prices in the market system?
A) coordination B) measuring desire C) profit D) measuring scarcity
A firm's long run cost is the cost of production when the firm
A) calculates its cost at least one year into the future. B) adds together all of its short run costs. C) uses the economically efficient quantities for its plant and its labor. D) can vary the amount of output it produces.
In the long run, the supply of goods is based on
a. the availability of the resources and the costs of production. b. the availability of the resources and the level of consumers’ incomes. c. the costs of production and consumer preferences. d. government regulations.
Indifference curves on the same indifference map can have different shapes
Indicate whether the statement is true or false