Jason spends all afternoon baking a cake. When it comes out of the oven, it's burnt and sunk in the middle. Jason thinks about all the time he invested in making it and decides he'll spend more time frosting it and eat it anyway, even though it tastes pretty terrible. Jason's decision to continue to decorate and eat the cake is a good example of:
A. someone focusing on sunk costs.
B. someone ignoring sunk costs.
C. someone thinking marginally.
D. someone weighing the opportunity costs of frosting and eating the cake and the benefits of doing so.
A. someone focusing on sunk costs.
Economics
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For a fixed proportion production function, at the vertex of any of the (L-shaped) isoquants the marginal productivity of either input is:
a. constant. b. zero. c. negative. d. a value that cannot be determined.
Economics
Refer to the graph shown. If this graph represents a monopoly market, the equilibrium price and quantity will be:
A. Qd= 50 - 1,000P. B. Qd= 1,000 - 20P. C. Qd= 20 - 1,000P. D. Qd= 1,000 - 50P.
Economics