A Behavioral Economist Will Explain Tom's Donation to Charity by Saying

question 116

Multiple Choice

A behavioral economist will explain Tom's donation to charity by saying that Tom is displaying

• A) the endowment effect.
• B) bounded rationality.
• C) bounded self-interest.
• D) bounded will power.

---

Definitions:

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Profit-maximizing

The process or strategy by which a firm determines the price and output level that returns the greatest profit.

Ethanol

A renewable fuel made from various plant materials, which can be used as an alternative to gasoline.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.