Suppose that you can either buy a radio from a firm for $50 or find and purchase the components yourself and then either assemble them yourself or hire someone to do so. You should
a. buy the radio because it's possible to do so
b. assemble the radio yourself because it's possible to do so
c. assemble the radio yourself only if you know how to do so
d. assemble the radio yourself only if the total price of all the components is less than $50
e. assemble the radio yourself only if the total price of all the components plus the value of your own time is less than $50
E
You might also like to view...
In an indifference curve diagram, the quantities of good Y are measured along the vertical axis and the quantities of good X are measured along the horizontal axis. The marginal rate of substitution is defined as
A) how much good Y you must give up to get one more unit of good X. B) how much good Y you are willing to give up to get one more unit of good X. C) the relative price of good Y in terms of good X. D) how much you prefer to substitute good X for good Y.
Which of the following is NOT a basic assumption of the "Lucas" model?
A) slow adjustment of wages and prices B) rational expectations C) imperfect information D) market-clearing