You're Deciding Whether to Install an $800 Moonroof and a $400

question 114

Multiple Choice

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.

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Definitions:

Right Arm

The right arm refers to the limb on the right side of the body extending from the shoulder to the wrist, including all the joints, muscles, and bones within this area.

Pacinian

Referring to Pacinian corpuscles, pressure-sensitive mechanoreceptors that respond to deep, transient pressure and vibration.

Ruffini Corpuscles

Sensory receptors located in the skin that detect stretch, pressure, and warmth, playing a role in the sensation of touch and control of finger position.

Merkel Cells

Specialized cells found in the skin that are involved in the sense of touch, particularly in detecting pressure and texture.