Refer to the scenario above. If Sarah is optimizing in differences, then which of the following statements is true?
A) An optimizer will rent the hotel room for three days if the net benefit of staying for three days exceeds the net benefit of staying for two days.
B) An optimizer will rent the hotel room for three days if the cost of staying for the first two days is less than the cost of staying for the third day.
C) An optimizer will rent the hotel room for three days if the benefit of staying for the third day exceeds the benefits of staying for the first two days.
D) An optimizer will rent the hotel room for three days if the benefit of staying for the third day exceeds the cost of staying for the third day.
D
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What is true of depletable resources is that
a. increasing scarcity leads to their total disappearance. b. they are depleted by gradually using up the supply of homogeneous resources, every unit of which is equally available. c. generally the most accessible and cheapest sources are used up so that new supplies become more costly. d. their prices must rise at the average rate of inflation.
The main reason barter is extremely inefficient is that:
A. it can have very high transactions costs associated with it. B. you have to find someone who both has what you want and wants what you have. C. people and firms have to spend a lot of time looking for mutually agreeable trades. D. All of these are true.