Faced with a Wide Variety of Computers to Choose From

question 18

Multiple Choice

Faced with a wide variety of computers to choose from, Mary first eliminated all models that would not fit comfortably on her desk. Next, she eliminated all models costing more than $1,000. Finally, she eliminated all models without a full year's warranty. It appears that Mary is using the _____ model of decision making.

• A)single-feature
• B)additive
• C)elimination-by-aspects
• D)integrative

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Definitions:

Internalize

The process of incorporating the cost of externalities into the decision-making process of firms or individuals.

Marginal Social Cost

Marginal social cost is the total cost to society of producing an additional unit of a good, including both private costs and any external costs.

External Costs

Costs incurred as a result of an economic activity that are not borne by the entities undertaking the activity but rather by other parties or society at large.

Marginal Cost

The rise in expense associated with the production of an extra unit of a product or service.