Going Skiing Will Cost Adam $80 a Day

question 324

Multiple Choice

Going skiing will cost Adam $80 a day.He also loses $40 per day in wages because he has to take time off from work.Adam still decides to go skiing.

• A) His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost.
• B) The $80 price of skiing is a sunk cost and so did not affect Adam's decision.
• C) He loses a total of $120 per day, so his decision is irrational.
• D) Adam's lost $40 per day in wages is a sunk cost and so did not affect his decision.
• E) Adam is definitely making a decision that is in the social interest.

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Definitions:

Central Node

In a network, the central node is the primary point of connection that can communicate with all other nodes, acting as a central hub for data transmission.

DeviceNet Network

A digital, multi-drop communication network that connects and manages industrial devices, using a common industrial protocol.

HART Field Devices

Field devices that use the Highway Addressable Remote Transducer protocol, allowing digital communication over traditional 4-20mA analog wiring.

Digital Communications

The exchange of information between electronic devices through digital signals or data, as opposed to analog communications.