Kara Was Out Jogging And, Despite Being Tired, Decided to Run

question 132

Multiple Choice

Kara was out jogging and, despite being tired, decided to run one more mile. Based on her actions, economists would conclude that Kara

• A) must be an avid runner.
• B) decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile.
• C) decided that the marginal cost of running one more mile would outweigh the benefit of the additional mile.
• D) was not very tired, so the marginal cost of the extra mile was very low.

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Definitions:

Utility Maximizing

A principle in economics where individuals or firms aim to achieve the highest level of satisfaction or profit from their consumption or production decisions, subject to their resources and constraints.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.

Indifference Curve

A graphical representation in microeconomic theory of all combinations of goods that provide a consumer with the same level of satisfaction, indicating their preferences.

Indifference Curve

A graphical representation showing different combinations of two goods that give a consumer equal satisfaction and utility.