In Determining Whether to Purchase a Labor Saving Machine, Extreme

question 95

Multiple Choice

In determining whether to purchase a labor saving machine, extreme resistance to the machine would be an) _____.

• A)relevant qualitative factor
• B)relevant quantitative factor
• C)irrelevant qualitative factor
• D)irrelevant quantitative factor

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Definitions:

Marginal Utility

The added satisfaction that a consumer gains from consuming one more unit of a good or service.

Risk-averse

A characteristic of individuals or entities that prefer to avoid risk in investment choices, opting for safer, less uncertain options.

Fair Bet

A gambling term where the expected return is equal to the original stake, with no advantage for the house or the bettor.

Expected Value

The calculated average of all possible values for a random variable, weighted by their respective probabilities.