The Expected Marginal Benefit to You from Purchasing a New

question 181

Multiple Choice

The expected marginal benefit to you from purchasing a new sport utility vehicle is $30 000. If the price of the new sport utility vehicle is $32 000, what will you do?

• A) If you are acting rationally, you will borrow $2000 and purchase a new sport utility vehicle.
• B) You will not purchase the new sport utility vehicle at this time if you are acting rationally.
• C) If you are acting rationally, you will purchase sport utility vehicles until the marginal cost of doing so falls to $30 000.
• D) If you do not purchase the new sport utility vehicle, your net loss will be $2000.

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Definitions:

Confederation of States

A union of states or regions that come together for a common purpose, maintaining a degree of autonomy but governed by a central authority.

Nineteenth Century

The era spanning from January 1, 1801, to December 31, 1900, marked by profound industrial, cultural, and political shifts globally.

Maintained Independence

The state of a nation or entity having preserved its sovereignty and self-governance over time, often despite challenges or threats.

Religious Freedom

The principle that supports the freedom of an individual or community, in public or private, to manifest religion or belief in teaching, practice, worship, and observance without government intervention.