Individuals behave so as to maximize their utility
a. True
b. False
Indicate whether the statement is true or false
True
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If it costs View Your World, a high-end window manufacturer, $20 per window to install a higher quality glass in its windows and consumers will pay an additional $28 per window for the improvement, which of the following is true?
A) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. B) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. C) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. D) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
How is interest measured when used in deriving GDP plus non-intome expense iterms, such as indirect businesses and depreciation?
What will be an ideal response?
When there is a run up in stock prices
A. interest rates decrease. B. inflation increases. C. investment increases. D. saving increases.
Jerry is interested in purchasing a washing machine. The price of the machine is $500. The probability that the machine will break down is 20% every year
If the machine breaks down in the first year and Jerry holds a warranty, he receives a new washing machine worth $400 that year. If the machine breaks down after two years and he holds a warranty, he receives a new machine that is worth $300 after the second year. The price of a warranty for two years is $100. The market interest rate is 5%. Is buying the warranty a good investment for Jerry? Explain your answer. Show all the necessary calculations.