The price of a ticket to the latest Broadway musical is $80 . You will purchase a ticket if:
a. you are acting irrationally
b. you place a lower valuation on seeing the musical than $80 but are extremely bored.
c. your expected marginal benefit from viewing the musical exceeds $80
d. your expected marginal cost from viewing the musical exceeds $80.
c
You might also like to view...
Which of the following statements about the financial crisis that began in 2008 is true?
A) It was a great illustration of how interdependent national economies are. B) Most economists agree that it originated in China. C) It only lasted 3 weeks. D) It only affected housing markets.
Exhibit 2-19 Production possibilities curves
In Exhibit 2-19, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and would like to get to point B in Year Y. Construct a plan this country to activate in Year X to achieve this growth.
A. Eliminate unemployment, improve production technology, and acquire additional resources. B. Produce more consumption goods, eliminate unemployment, and reduce inefficiency. C. Reduce inefficiency, shift energy sources, and hold technology fixed. D. It is impossible for this country to achieve point B in Year Y.
The net loss from trade diversion for a country is likely to be smaller if
A. the good can be produced at relatively lower cost in the bloc-partners than in the outside world. B. the bloc partner's export price is closer to the tariff-inclusive price for imports from countries outside the bloc. C. the county's import demand is more elastic. D. the country's tariff rate on the product is higher.
The additional cost associated with one more unit of an activity is the ______ cost.
Fill in the blank(s) with the appropriate word(s)