Rex Carr Could Pay $10 for a Shovel That Lasts

question 7

Multiple Choice

Rex Carr could pay $10 for a shovel that lasts one year and pay $5 a car to his brother Scoop to bury the cars, or he could buy a low-quality car smasher that costs $200 a year to own and that smashes cars at a marginal cost of $1 per car.If it is also possible for Rex to buy a high-quality hydraulic car smasher that cost $450 per year to own and if with this smasher he could dispose of cars at a cost of $.80 per car, it would be worthwhile for him to buy this high-quality smasher if he planned to dispose of

• A)at least 1,260 cars per year.
• B)at least 1,250 cars per year.
• C)no more than 625 cars per year.
• D)no more than 1,250 cars per year.
• E)at least 625 cars per year.

Understand the concept of hindsight bias and its impact on perception after an event.

Identify and explain the psychological mechanisms behind aggression and violence.

Recognize the role of genetic factors and environmental influences in aggressive behavior.

Analyze the effects of social categorization, such as in-group and out-group perceptions.

---

Definitions:

Price-leadership Model

A market strategy where one dominating firm sets the price for its product, and other firms in the industry follow suit, often observed in oligopolistic markets.

Dominant Firm

A company that has a large portion of market share in its industry, giving it significant power to influence market conditions and prices.

Economic Incentives

Monetary or other rewards used to motivate individuals or entities to perform certain actions beneficial to economic objectives.

Differentiate

The method of differentiating a product or service to enhance its appeal to a specific target audience.