You're deciding whether to install an $800 moonroof and a $400 security system in your car. Suppose the marginal benefit from the moonroof is $700 and the marginal benefit from the security system is $600. The economic decision rule dictates that you should:
A) purchase only the moonroof because that will provide you with the greatest marginal benefit.
B) purchase only the security system because its marginal benefit exceeds its marginal cost.
C) purchase both options because the combined cost of both is less than the combined benefit.
D) not purchase either because the benefits of each do not exceed the costs.
Correct Answer:
Verified
Q20: Social and political forces affect the way
Q21: The price of a new model of
Q22: The marginal benefit of another T-shirt this
Q23: Which of the following best defines rational
Q24: The marginal cost of consuming another unit
Q26: Microsoft filed a lawsuit against people who
Q27: Mary buys cell-phone services from a company
Q28: Sunk costs:
A) are an essential part of
Q29: Chuck offers $240,000 for a house. The
Q30: Marginal analysis suggests that you will engage
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents