Refer to the scenario above. Which of the following is true if Sarah is optimizing in levels?
A) An optimizer will rent the hotel for three days if the total benefit of staying for three days exceeds the total benefits of staying for two days.
B) An optimizer will rent the hotel room for three days if the cost of staying for two days exceeds the cost of staying for three days.
C) An optimizer will rent the hotel room for three days if the net benefit of staying for three days exceeds the net benefit of staying for two days.
D) An optimizer will rent the hotel room for three days if the net benefit of staying for the third day is negative.
C
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Most economists agree with which of the following?
A) Passive policymaking is likely to exert sizable long-run effects on real GDP. B) Active policymaking is likely to exert sizable long-run effects on real GDP. C) Active policymaking is unlikely to exert sizable long-run effects on real GDP. D) none of the above
An implicit cost is
a. any cost a firm cannot avoid in the short run b. any expenditure a firm makes c. an opportunity cost d. accurately measured in accounting statements e. ignored by economists
A firm whose price is below its average cost:
a. is earning negative economic profit. b. is earning positive economic profit. c. is just breaking even. d. is earning zero economic profit. e. is earning zero accounting profit.
Unplanned inventory decreases prompt firms to cut back on production until equilibrium output is restored
a. True b. False Indicate whether the statement is true or false