The marginal cost of a vacation in Jamaica is $3,500. The marginal benefit to Jordan of a vacation in Jamaica is $3,000.
A) According to the rule of rational choice, Jordan should choose not to vacation in Jamaica at this time.
B) According to the rule of rational choice, Jordan will experience a net gain of $500 if he vacations in Jamaica.
C) According to the rule of rational choice, Jordan should borrow $500 and vacation in Jamaica.
D) According to the rule of rational choice, Jordan will experience a net gain of $3,000 if he vacations in Jamaica.
Correct Answer:
Verified
Q107: The expected marginal benefit to you from
Q108: The marginal cost of a vacation in
Q109: If a student enrolls in an additional
Q110: Positive incentives do not:
A)increase benefits.
B)result in an
Q111: Individuals will only pursue an activity if:
A)E(MB)
Q113: The rule of rational choice:
A)requires the availability
Q114: Economists believe that people respond to incentives
Q115: The marginal benefit to you of drinking
Q116: If people follow the rule of rational
Q117: The marginal cost of a vacation in
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