If the Marginal Costs of 1,2,and 3 Hours of Talking

question 58

Multiple Choice

If the marginal costs of 1,2,and 3 hours of talking on the phone are $50,$75,and $105,then the total costs are

• A) $50,$150,and $315.
• B) $50,$41.67,and $115.
• C) $50,125,and $230.
• D) $50,$175,and $405.
• E) impossible to calculate with information given.

Identify the characteristics of a good economic theory.

Understand the concept of rational self-interest in economic decision-making.

Differentiate between normative and positive economic statements.

Recognize the role of economists in storytelling to clarify economic theories and models.

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Definitions:

Common Grounds

Shared beliefs, values, or interests that can be used as a basis for communication or agreement.

Psychological Descriptions

Detailed accounts or explanations of human behavior and mental processes.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driving individuals to pursue and achieve objectives.

Stereotypes

Overgeneralized beliefs about a particular category of people that do not consider individual difference.