When would going to a movie be a rational economic decision?
a rational decision if her marginal cost from the movie is greater than her marginal benefit from the movie. E. a rational decision if her marginal benefit from the movie is greater than her marginal cost of watching the movie.
At which point do marginal benefits equal marginal costs quizlet?
Only at the efficient point, where marginal benefits are equal to the marginal costs of reading are net benefits maximized.
When the marginal benefits exceed the marginal costs of producing a product?
When the marginal benefits exceed the marginal costs of producing a product, then allocative efficiency is not achieved in the market.
When entering a building Sam diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path this is an example of?
When entering a building, Sam diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path. This is an example of: irrational behavior.
Which of the following best describes the opportunity cost of attending a free concert?
Explanation: Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives. The opportunity cost of attending the concert is the activity that could have been done if one didnt attend the concert which is playing video games.
Which of the following describes the law of increasing opportunity cost?
The law of increasing opportunity costs states that: if society wants to produce more of a particular god, it must sacrifice larger and larger amounts of another good to do so. Which situation would most likely cause a nation’s production possibilities curve to shift inward?
What does it mean when opportunity cost increases?
Opportunity cost is the value of the best alternative choice when you pursue a certain action. In other words, the difference between what you have chosen to do and what you could have chosen. Increasing opportunity cost means losing out on something else at an ever-growing rate.
What is marginal opportunity cost explain with example?
Marginal opportunity cost(s) are the added expenses that a company will pay for increasing production. It includes actual expenses and intangible costs, as well as the income lost from other opportunities that cannot be taken if the resources are used to create more of the one product.
What do the opportunity cost and marginal opportunity cost means explain with a numerical example?
Marginal opportunity cost (MRT) examines the trade-off between the allocation of resources between the production of goods. It is the rate at which one good must be sacrificed to produce an extra unit of another good. This increasing opportunity cost can be explained with the help of a numerical example.
Is trade-off and opportunity cost the same?
The trade-off is a term used to describe the courses of action given up in order to perform the preferred course of action. Conversely, the opportunity cost is defined as the cost of opting one course of action and forgoing another opportunity, to undertake that course of action.