Which of the Following Scenarios Describes an Action That Is

question 280

Multiple Choice

Which of the following scenarios describes an action that is not rational from an economic point of view?

• A) After drinking one martini (shaken, not stirred), James buys and drinks a second martini even though the marginal benefit of the second martini is lower than the marginal benefit of the first.
• B) Eric buys a replacement ticket to the basketball game after he realizes that he accidentally left his original ticket at home.
• C) Emily chooses to attend a social event on Tuesday night instead of studying even though she has an important exam on Wednesday morning.
• D) US Airways sells a last minute ticket to Don for $50 even though its average cost per passenger is $250.
• E) None of the above

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Definitions:

Units

Basic quantities or measurements in which variables, constants, and other quantities are expressed in various contexts such as physics, chemistry, and mathematics.

Sales Forecast

The estimation of the amount of goods or services that will be sold during a future period.

Ending Inventory

The total value of all unsold goods that a company has in stock at the end of an accounting period.

Units

A measure of quantity or amount in terms of a standardized value, often used to quantify the output or production of goods.