Josh went to watch a movie, but decided to leave halfway and went for a walk to the nearby park. Which of the following is most likely to be true in this case?
a. The price of the movie ticket represents a sunk cost
b. The opportunity cost of going for the walk is higher than the opportunity cost of watching the movie.
c. Josh's marginal utility from walking increases as he walks more.
d. Josh's marginal utility from watching another movie is the same as his marginal utility from walking another mile.
a
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Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in supply and an increase in demand are represented by a movement from
A) point c to point a. B) point d to point a. C) point d to point b. D) point b to point c.
The law of demand
A) was passed by the 102nd U.S. Congress. B) is a natural law, much like the law of gravity. C) is considered a "law" in economics because of the overwhelming empirical evidence that supports its logic. D) is considered a "law" in economics in order to force economic models to operate fully.
When a firm faces a downward-sloping demand curve, marginal revenue
a. is constant regardless of how much output the firm produces b. is less than price c. increases as the firm produces more output d. decreases if the firm produces less output e. is equal to the price per unit of output
If deflation is 0.5 percent per year and you receive a 1 percent decrease in your salary, then your
A. Real income falls, but your nominal income remains unchanged. B. Real and nominal income both rise. C. Real and nominal income both fall. D. Real income remains unchanged, but your nominal income rises.