If You Eat at a Las Vegas Casino That Charges

question 101

Multiple Choice

If you eat at a Las Vegas casino that charges $12 for its all you can eat buffet, then the marginal cost of your third trip to the buffet is

• A) zero.
• B) $4.
• C) $12.
• D) $36.

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Definitions:

Co-insurance

An insurance arrangement where the risk is shared between the insurer and the insured, often requiring the insured to pay a specified percentage of the costs of a claim.

Utmost Good Faith

A principle requiring all parties in an agreement or contract to act honestly and not mislead or withhold critical information.

Wagering Agreement

A contract centered around betting or gambling where the outcome depends on an uncertain event.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of the involved parties.