When Most Economists Wake Up in the Morning,their First Decision

question 49

Multiple Choice

When most economists wake up in the morning,their first decision is whether to hit the snooze bar on the alarm clock.What statement best represents their thought process as rational decision-makers?

• A) I had a really late night grading exams, and I deserve 10 more minutes of sleep.
• B) The total amount of work I have to do today is rather small, so the total benefit to going to work for a full 8 hours is also small.
• C) The total amount of work I have to do today is rather small, so the marginal cost of going to work 10 minutes late is small.
• D) The total amount of work I have to do today is rather small, so the marginal benefit of sleeping 10 more minutes is rather large.
• E) The marginal benefit of sleeping 10 more minutes is greater than the marginal benefit of 10 more minutes of work.

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Definitions:

Divesting Strategy

A business approach that involves selling off subsidiary business interests or investments as a way to focus on core operations or to raise capital.

Harvesting Strategy

A business strategy focused on maximizing short-term profits with limited reinvestment, often used when winding down operations or in declining markets.

Product Deletion

The process of permanently removing a product from a company's offerings due to low sales, obsolescence, or changing company objectives.

Marketing Costs

refer to expenses associated with promoting and selling a product or service, including advertising, salesforce expenses, and promotional materials.