Last month, Sally spent $3,000 in repairing her old car. Now her car requires an additional $2,000 in repairs. She could get a comparable car for $2,500 . She should
a. repair her car because the money she has already spent repairing the car ($3,000 . exceeds the price of the new car ($2,500)
b. buy a new car because sunk costs should be ignored in decision making
c. buy a new car because the price of the new car ($2,500) is less than the total amount she would spend on her current car ($5,000)
d. repair her car since the cost of repairing it is lower than the cost of buying another car
e. repair the car or buy a comparable one because the opportunity costs are the same
D
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In general, firms will produce at a rate of output such that marginal revenue equals marginal cost because this output rate will
a. bring total revenue into equality with total cost. b. maximize the difference between the revenue received from the last unit and the cost incurred in producing the last unit. c. result in the lowest possible average total costs of production. d. maximize the firm's profit.
Which organization acts as a forum for countries to come to agreement on trade policies and resolve trade policy disputes?
a. the International Trade Organization b. the United Nations c. the World Trade Organization d. the United Nations Conference on Trade and Development
Only the bondholders of a corporation have the right to vote for a corporation's directors.
Answer the following statement true (T) or false (F)
A consumer is willing to purchase a product up to the point where
A) he spends all of his income. B) the marginal benefit is equal to the price of the product. C) the quantity demanded is equal to the quantity supplied. D) he is indifferent between consuming and saving.