State the Economic Decision Rule and Apply It to the Following

question 15

Essay

State the economic decision rule and apply it to the following situations:
(a)A personal computer costs about 2 cent per hour to operate.Every time it is turned on and off,there is a .00005 probability that the computer will fail,costing $700 to repair.Is it worthwhile to turn off your computer?
(b)Should you try out for the soccer or the baseball team?
(c)The date to withdraw from a course and get the $300 refund has passed.With 30 more classes left in the semester,should you drop the course?
(d)Your employer has offered you a 20% raise.Do you work more hours?
The economic decision rule is: If the marginal benefits of doing something exceed the marginal costs,do it; If the marginal costs of doing something exceed the marginal benefits,don't do it.

---

Definitions:

Questionnaire Design

The process of creating a set of questions aimed at gathering information from respondents in a structured manner.

Fall Fashion Line

A collection of clothing, footwear, and accessories that designers release in anticipation of the autumn season.

Focus Group Interviews

A qualitative research method involving a small, diverse group of people whose reactions to specific discussions or products are studied.

Marketing Research

The systematic gathering, recording, and analyzing of data about issues relating to marketing products and services.