Vivaan, a Musician, Frequently Plays at Large Parties and Nightclubs

question 46

Multiple Choice

Vivaan, a musician, frequently plays at large parties and nightclubs. Vivaan has musical equipment worth $8,000, and he takes precautions to prevent theft. The marginal benefit of these precautions is given by MB = 60 - 3A, where A is the number of precautions Vivaan takes. The marginal cost of preventing theft (i.e., the time, energy, and effort expended) is given by MC = 2A. Suppose Vivaan purchases full insurance that pays him $8,000 if his gear is stolen. What is Vivaan's optimal level of precautions?

• A) 0
• B) 2
• C) 5
• D) 20

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Definitions:

Flashbulb Memory

A vivid and detailed memory of a surprising and emotionally significant event, which can be recalled with high accuracy.

Autobiographical Memory

The aspect of memory that stores information regarding oneself, including personal experiences, emotions, and facts.

Reconstruct

The process of rebuilding or forming an object, concept, or cognitive representation after its analysis or deconstruction.