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Tony Is Too Cheap to Buy Weights to Do Weight-Lifting

question 28

Multiple Choice

Tony is too cheap to buy weights to do weight-lifting. He therefore decides to use bottled water instead. Consumer psychologists would say that this is an example of ____.


Definitions:

Marginal Product

The additional output produced as a result of adding one more unit of a specific input, keeping other inputs constant.

Value of Marginal Product

The additional revenue generated by employing one more unit of a factor of production, such as labor.

Marginal Product

The increase in output resulting from a one-unit increase in the input of a production factor, holding all other inputs constant.

Marginal Cost

The increase in total cost that arises from an extra unit of production.

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