How long is it worthwhile to continue searching for a $20 bill that you lost if you value your time at $5 an hour?
A) About 2 hours if there is a fifty percent chance of finding it.
B) About 4 hours, regardless of the probability of finding it.
C) Only so long as you expect to find it within the next four hours, which could mean far more than four hours of searching.
D) You cannot make a rational decision without first knowing whether you will find it.
E) You should not search at all because the lost bill is a sunk cost.
C
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The above table shows marginal costs and marginal benefits of clean air in a particular industrial area. In the table, when the quantity of clean air is at 75 percent
A) the quantity of polluted air is 75 percent. B) the marginal benefit of clean air exceeds the marginal cost. C) the marginal benefit of clean air is less than the marginal cost. D) the quantity of clean air is optimal.
What does it mean for a firm to be a price taker in the labor market?
What will be an ideal response?