EBK MICROECONOMICS
2nd Edition
ISBN: 8220103679701
Author: List
Publisher: YUZU
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Question
Chapter 3, Problem 3P
To determine
Type of optimization in the following cases:
(a) When John derives more benefits from watching a new batman movie than from watching a new Spiderman movie.
(b) When Marcia determines net benefit
(c) When Nikki jogs for
(d)When Reagan’s net benefit from purchasing a queen bed is
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Suppose that you can purchase satellite TV service for a fixed monthly fee of $79, no matter how many hours of TV you watch. Assuming that the principle of diminishing marginal benefit applies to watching TV, the optimal (efficient) number of hours of TV to watch per month is:
Group of answer choices
Zero
The number of hours where marginal benefits are zero.
The number of hours where marginal cost is lowest.
The number of hours where marginal benefits are maximized.
Within the framework of economics, optimization means providing a good or service until: a. marginal benefits and marginal costs are equal. b. marginal benefits exceed marginal costs by the greatest amount possible. c. total benefits are greater than total costs. d. total benefits and total costs are equal. e. total benefits are maximized.
Explain how an economically rational bank robber should determine how many minutes to spend in the bank committing the robbery. Be sure to explain the principle that a rational bank robber would apply to this decision, and how that principle would be applied.
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