The Rational Rule for Sellers involves applying only the marginal principle. O only the opportunity cost principle. O only the cost-benefit principle. the marginal principle, the cost-benefit principle, and the opportunity cost principle.

The Rational Rule for Sellers involves applying only the marginal principle. O only the opportunity cost principle. O only the cost-benefit principle. the marginal principle, the cost-benefit principle, and the opportunity cost principle.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 19CTQ: Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers...

See similar textbooks

Related questions

Q: Name at least three industries that will help you move to home ownership

A: The term 'home ownership' isn't simply home purchasing or putting away cash on a home, it implies…

Q: Mario wants to expand the market for his specialty line of clothing, but he doesn't have the funds…

A: The objective of the question is to identify a cost-effective channel for Mario to expand his…

Q: Potential Buyer-Related Issues with Reverse Auctions

A: A revers auction is a type of auction in which the sellers will offer their items for bidding and…

Q: Advertising and sales promotions are ways of persuading consumers to match demand with products…

Q: how to maximize profit in monopoly, competitive market, oligopoly and monopolistic competition?

A: Monopoly is a form of market where there is a single seller in the market. This seller is a price…

Q: There are several hamburger shops around you. You are trying to find ways to make your hamburger…

A: A monopolistically competitive firm will look to differentiate its product from its competitors as…

Q: duopoly market

A: A market in which there are only two sellers/producers is called duopoly. Economists have formed…

Q: What display how Apple competes via its chosen strategy

A: Beginning with the Macintosh computer in the 1980s and continuing all the way up to the iPhone in…

Q: A startup is creating a blockchain-based system for supply chain management, aiming to increase…

A: The question is asking about the primary enhancement that the application of blockchain technology…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: 1. The strategies are answering honestly or answering with a lie.Both are honest. Both receives…

Q: Instacart, and FreshDirect. Add rows showing various advantages to the firm and consumer and use the…

A: Creating a chart to compare traditional grocers, Instacart, and Fresh Direct based on various…

Q: What causes share prices to change?

A: Share prices fluctuate due to changes in supply and demand, just like with all other assets. In…

Q: Why do authorities in most countries have laws and regulation to prevent collusion

A: Laws are the rules and regulations that guide the people of the country.

Q: Suppose you work for a specialty food store. The owners are considering providing an e-commerce…

A: I would start by analyzing the situation to assess the strengths and weaknesses of such a goal as…

Question

100%

Explain well. Step by step.asap

The Rational Rule for Sellers involves applying
O only the marginal principle.
O only the opportunity cost principle.
O only the cost-benefit principle.
O the marginal principle, the cost-benefit principle, and the opportunity cost principle.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utilityâ€”maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.
Suppose Alphonsos town raised the price of bus tickets to 1 per trip (while file price of burgers stayed at 2 and his budget remained 10 per week.) Draw Alphonsos new budget constraint. What happens to file opportunity cost of bus tickets?
Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.
Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?
If the price of a pie is 12, what is the maximum number of pies she could buy in a week?
Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that enables more healthcare wilt line same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? Figure 2.4 Productive and Allocative Efficiency
As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.
Who determines how much utility an individual will receive from consuming a good?
Draw Maries budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of me budget constraint?
Think back to a purchase that you made recently. How would you describe your thinking before you made that purchase?
If the price of a magazine is 4 each, what is the maximum number of magazines she could buy in a week?
What is productive efficiency? Allocative efficiency?