Suppose you want to get to Orlando, Florida, for the week-long spring break. You can get there in two and one-half days by bus, and back in another two and one-half days. This will cost you $20 round-trip. You can fly there and back in four hours each way. This will cost $200 . Which of the following is not true?
a. It may be economically rational for you to go by plane rather than by bus.
b. Depending on what else you can do that week, it may be economically rational for you to not go at all rather than to go by bus.
c. The true cost of going to Orlando is either the time or the money you spend traveling, whichever it is you value more.
d. The more you'd enjoy Orlando, the more economically rational it becomes for you to fly there instead of taking the bus.
e. It is possible that it is rational for you to fly and rational for others to take the bus.
C
You might also like to view...
A Nash equilibrium
i. is named after the Nobel prize winning economist, John Nash. ii. occurs when each player chooses the best strategy given the strategy of the other player. iii. must give the best possible outcome for each player. A) i only B) ii only C) iii only D) i and ii E) ii and iii
According to the adaptive expectations theory, after many years of rising prices, people tend to ignore past experience in predicting the future rate of inflation
a. True b. False Indicate whether the statement is true or false