Tony Notes That an Electronics Store Is Offering a Flat

question 68

Multiple Choice

Tony notes that an electronics store is offering a flat $20 off all prices in the store.Tony reasons that,if he wants to buy something with a price of $50,it is a good offer,but if he wants to buy something with a price of $500,it is not a good offer.This is an example of

• A) inconsistent reasoning;saving $20 is saving $20.
• B) the proper application of the cost-benefit principle.
• C) rational choice because,in the first case,he saves 40% and,in the second case,he saves 4%.
• D) "marginal cost equals marginal benefit" thinking.
• E) opportunity costs.

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Definitions:

Present Intent

Present intent is a legal term referring to a person's immediate intention or determination to perform a particular act or to enter into a contract at the current moment.

Delivery

The process of transferring goods from one party to another.

Personal Property

Tangible or intangible items that belong to an individual or business, excluding real estate.

True Owner

The individual or entity that holds the legitimate rights to ownership or possession of property.