​Which of the Following Does Not Reflect a Positive Rate

question 99

Multiple Choice

​Which of the following does not reflect a positive rate of time preference?

• A)People being willing to pay high prices to see new movies at theaters
• B)A bank paying interest on savings accounts
• C)Ed saving money for a rainy day
• D)Dry cleaners that provide faster service charging more for their service
• E)Dan buying the Harry Potter books as soon as they are published

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Definitions:

Profit-Maximizing

A strategy firms adopt aiming to produce the quantity of goods or services that leads to the highest possible profit.

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Output

The total amount of goods or services produced by a company, industry, or economy within a particular period.

Economic Profit

The difference between total revenue and total economic costs (including both explicit and implicit costs), reflecting the true economic performance of a company.