A Gift-Giver's Efficient Number of Gifts (To Give to a Gift-Recipient)has

question 9

Multiple Choice

A gift-giver's efficient number of gifts (to give to a gift-recipient) has fallen from 10 to 8.  This could be because

• A)the gift-giver's marginal benefit and marginal cost curves for giving gifts remained constant.
• B)the gift-giver's marginal cost curve of giving gifts shifted up and leftward.
• C)the gift-recipient "fell out" of the gift-giver's utility function.
• D)the gift-giver's marginal cost curve of giving gifts shifted down and rightward.

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Definitions:

Transportation Costs

Expenses incurred in moving goods from one location to another, such as freight and shipping fees.

Merchandise

Goods or products that are bought, sold, or traded in the retail environment.

Merchandise Inventory

Goods available for sale to customers, held by a business; categorized as a current asset on the balance sheet.

Purchase Discounts

Reductions in the amount owed by a buyer to a seller for goods purchased, typically gained by paying early or within a specified period.