Rex Carr Could Pay $10 for a Shovel That Lasts

question 11

Multiple Choice

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it is also possible for Rex to buy a high-quality hydraulic car smasher that cost $550 per year to own and if with this smasher he could dispose of cars at a cost of $.75 per car, it would be worthwhile for him to buy this high-quality smasher if he planned to dispose of

• A)at least 1,410 cars per year.
• B)no more than 700 cars per year.
• C)no more than 1,400 cars per year.
• D)at least 1,400 cars per year.
• E)at least 700 cars per year.

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Definitions:

Projection

The tendency for perceivers to attribute their own thoughts and feelings to others.

Displacement

A psychological defense mechanism where an individual redirects emotional responses from their original source to another target.

Compensation

All forms of financial returns and tangible benefits that employees receive as part of an employment relationship.

Reaction Formation

A psychological defense mechanism where an individual unconsciously replaces their true feelings with the opposite.