A consumer has two basic choices in making a trip: rent a car for $30.00 a day and spend two days of travel to the destination, or spend $400 for an airplane ticket and fly to the destination in two hours. The marginal utilities of the car rental and the airline ticket are the same. The consumer values time at $5 an hour. The rational consumer will most likely:
A. Rent a car
B. Buy an airline ticket
C. Find the full cost of the two modes to be equal
D. Not make the trip
A. Rent a car
Economics
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In the above figure, what is the quantity of workers that would be hired by a monopsonist?
A) Q1 B) Q2 C) Q3 D) Q4
Economics
Market demand curves may slope downward even if some individual demand curves do not because
a. the law of demand requires that this is true. b. lower prices may bring more purchasers into the market. c. merchants try to sell more at lower prices. d. people believe expensive goods are better goods.
Economics