Marcus Gets a New Cell Phone for Graduation

question 80

Multiple Choice

Marcus gets a new cell phone for graduation.He abandons his old phone in a drawer forever,even though he could sell it on Craigslist for $50.Marcus's behavior is

• A) irrational,because he wouldn't pay $50 for his old phone today,and still gives it up.
• B) rational,because he wouldn't pay $50 for his old phone today,and still gives it up.
• C) irrational,because the value of his new phone is $300 and should be compared to the $50 value of the old phone.
• D) rational,because the value of his new phone is $300 and should be compared to the $50 value of the old phone.
• E) neither rational nor irrational,since Marcus didn't buy the new phone.

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Definitions:

Capital Expenditure

Funds used by an organization to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.