While Waiting in Line to Buy Two Tacos at 80

question 96

Multiple Choice

While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $3. Jordan should purchase the value meal if

• A) his marginal cost exceeds his marginal benefit.
• B) his marginal benefit of the third taco is greater than 50 cents.
• C) his value of the third taco is less than 50 cents.
• D) he has $3 in his wallet.

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Definitions:

SRMR

Standardized Root Mean Square Residual, a goodness-of-fit statistic in structural equation modeling that measures the difference between observed and predicted correlations.

SRMC

Short-Run Marginal Cost, which refers to the cost of producing one more unit of a good or service in the short term.

Acquired Firm

A company that has been purchased and taken over by another company.

Substitutes

are products or services that can replace or be used in place of another, catering to similar needs or functionalities, often influencing consumer choices and market dynamics.