Suppose a Dairy Farmer Is Considering the Purchase of an Additional

question 53

Multiple Choice

Suppose a dairy farmer is considering the purchase of an additional milking machine at a price of $4000.She expects the discounted MRP of the machine in Year 1 to be $1700,in Year 2 to be $1500 and in Year 3 to be $1200,after which the machine has no value.The farmer should

• A)buy the machine because its present value is $400 more than its purchase price.
• B)buy the machine because its marginal revenue is $400 more than its marginal cost.
• C)be indifferent about the purchase because its present value is approximately equal to its purchase price.
• D)not buy the machine because its marginal revenue is $400 less than its marginal cost.
• E)not buy the machine because its present value is $400 less than its purchase price.

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Definitions:

Ageist Attitude

Prejudice or discrimination against individuals or groups based on their age, often directed towards older adults.

Stereotypes

Oversimplified generalizations about groups of people that may not accurately reflect reality.

Sense Of Self

An individual's perception of their identity and personal attributes, which influences their thoughts, actions, and interactions with others.

Possible Selves

Future-oriented representations of self-concept into the future; who an individual might become, both hoped for and feared, that guides and motivates choices and behaviors.