Monika Will Choose to Eat a Seventh Pizza Slice If

question 32

Multiple Choice

Monika will choose to eat a seventh pizza slice if

• A)the marginal benefit from the seventh slice is greater than its marginal cost.
• B)the marginal benefit from the seventh slice is less than its marginal cost.
• C)the total benefit from all seven slices is greater than their total cost.
• D)the total benefit from all seven slices is less than their total cost.
• E)she has enough money to pay for it.

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Definitions:

Expected Monetary Value(EMV)

A method employed in making decisions that calculates the mean result in situations where the future holds potential but uncertain events.

Expected Monetary Value

The predicted average amount of money gained or lost from an investment or decision, calculated by considering all possible outcomes and their probabilities.

Gross Profits

Total revenue of a company minus the cost of goods sold.

Payoff Table

A tabular representation of the outcomes (payoffs) of different decisions under various states of nature.