Because People Usually Exploit Opportunities to Make Themselves Better Off,if

question 167

Multiple Choice

Because people usually exploit opportunities to make themselves better off,if the price of gasoline rises and stays high for an extended period,we expect people to:

• A)increase the number of miles they drive.
• B)buy larger and less fuel-efficient cars.
• C)use more public transportation.
• D)ride their bicycles less.

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Definitions:

Profit-maximizing Quantity

The level of output at which a business realizes the greatest profit, where marginal cost equals marginal revenue.

Economic Loss

Occurs when the total cost of producing a good or service exceeds the revenue generated from its sale, leading to negative profitability.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Quantity

The amount or number of a material or immaterial good considered as a discrete unit or in total.