What is the term for the economic principle. that individuals try to get the greatest benefit from a given resource? A) Opportunity Cost B) Marginal Utility C) Supply and Demand D) Rational Choice Theory

What is the term for the economic principle. that individuals try to get the greatest benefit from a given resource? A) Opportunity Cost B) Marginal Utility C) Supply and Demand D) Rational Choice Theory

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Apply marginal utility theory to the paradox of value

A: The change in the total utility when one additional unit of good is consumed is called marginal…

Q: Stephen and Rebecca both enjoy drinking coffee. The marginal benefit that each places on the coffee…

A: Marginal benefit is the maximum amount of money a consumer is willing to pay for an additional good…

Q: "Uber eats usually has a promotion in which, if a customer orders more than $30 worth of food at a…

A: Given information Uber eats has promotional activity and by this activity customers are offered to…

Q: What economic concept determines when you should stop eating wings?

A: Introduction Utility as a concept is widely used to theorize many of the popular economic concepts.…

Q: Which principle states that "individuals facing limited resources must make choices, and each choice…

A: This principle reflects the fundamental concept in economics that resources are limited, and…

Q: Economics please help....

A: a. Yes, Libby's and its retailers need to have every resource at their disposal to compete with…

Q: 1) The following table shows William's total utility from consuming Pita Wraps and Bubble Tea.…

A: Utility maximization is when individuals choose an optimal bundle of goods and services to receive…

Q: Rosa is training for a triathlon, a timed race that combines swimming, biking, and running. Consider…

A: In a market, when an individual enters to make purchase of goods and services, his decision is based…

Q: I am trying to figure out how to find the marginal benefit

A: To show how to calculate the marginal benefit.

Q: If coupon clipping is so rewarding, why doesn't everyone do it? According to basic economic theory,…

A: Coupon clipping is referred to as a practice of finding discounts on consumer goods such as…

Q: Economics studies choices that arise from one fact. What is that fact? A. Our resources are unable…

A: Choices are a result of scarcity in the economy whereby the resources are scarce due to unlimited…

Q: Units Consumed 0 1 2 3 4 Total Marginal Utility Utility 0 W The value for Z is Multiple Choice -10.…

A: The additional satisfaction or benefit derived from consuming or obtaining one additional unit of a…

Q: Suppose you go to Trader Joe's to buy fruit for the week. You only like apples (A) and bananas (B)…

A: Preference is over apples and bananas.Income = $11Price of Apples = $1 Price of Bananas = 0.25 We…

Q: In the following graph the price of Y is $15. What does the curve in the second graph show? Y 40…

A: The budget constraint is the graphical representation of the relationship between bundles of…

Q: Refer to the figure below. The marginal utility of consuming the 2nd apple is: Number of Apples…

A: Utility is the wants satisfying power of commodity , and the when person consume one more…

Q: 1. Using the following information, calculate total utility and marginal utility. a. Plot the total…

A: The utility is the wants satisfying power of a product. Total utility is the total amount of…

Q: Steve allocates his budget of $24 per week among three goods. Use the following table of the…

A: Our analysis demonstrates that Steve's consumption choices are guided by the principle of marginal…

Q: The utility of a good or service Multiple Choice O O O is synonymous with usefulness. is the…

A: Consumer theory is referred to the study of how an individual decides on spending their wealth on…

Q: What is market equilibrium and does market equilibrium matter?

A: Disequilibrium macroeconomics is a habit of research focused on the role of disequilibrium in…

Q: Suppose you go to Trader Joe's to buy fruit for the week. You only like apples (A) and bananas (B)…

A: Preference is over apples and bananas.Income = $11Price of Apples = $1 Price of Bananas = 0.25 We…

Question

What is the term for the economic principle
that individuals try to get the greatest
benefit from a given resource?
A) Opportunity Cost
B) Marginal Utility
C) Supply and Demand
D) Rational Choice Theory

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Define the Problem

VIEW

Step 2: Correct answer explanation

VIEW

Step 3: Why the Other Options Are Incorrect

VIEW

Solution

VIEW

Step by step

Solved in 4 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

ECONOMICS LECTURE NOTE 5.1.3 Example Use the table below to answer the questions that follows Commodity x Quantity Commodity y Quantity Marginal utility 60 Average utility 1 30 2 50 2 27 3 35 3. 22 4 15 4. 18 5 5 15 6. 6. 12 iii. Which of the commodities would he pay higher price when 4 units are consumed? Suppose the price of X is 5 and that of Y is 4. How many of the quantity of X and Y should be consumed in order for the consumer to be in iv. equilibrium. If price of X increase to 10 whiles that of Y remains the same, explain how the equilibrium conditions will behave.
People who misunderstand the optimal purchase rule argue that if a consumer buys so much of a good that it's price is equal to marginal utility, she could not be behaving optimally. Rather, they sat, she would be better of quitting while she was ahead, or buying a quantity such that marginal utility is much greater than the price. What's wrong with this argument? Answer with a graph
Economics is about the production of goods and services, which requires the allocation of: a. benefits b. consumption c. resources d. utility
Question 22: Kathy gets utility from three things: the number of flowers in her local park (F), reading books in this park (R), and eating sushi (S). Four utility functions that might describe Kathy's preferences are shown below. In each case, discuss whether reading in the park (R) is non-essential and whether reading (R) and the number of flowers in the park (F) are weak complements. [medium] (a) U(F, R, S) = 2FR+S (b) U(F, R, S) = /2FR+S (c) U(F, R, S) = (V2FR)S (d) U(F, R, S) = v2F + RS
Discuss the theory of diminishing marginal utility and give an example illustrating the concepts and techniques related to utility.
Which concept refers to the tendency of individuals to overvalue the utility of an item they already possess compared to an identical item they do not possess? A. Diminishing marginal utility B. Marginal cost C. Sunk cost fallacy D. Endowment effect
Chapter 3 Part 2 Questions: Please use the following graph to answer questions 1-3. Units of Environmental Quality 5 4 3 1 4 6 B D E 8 10 12 Units of Power 1. What is the Marginal Rate of Substitution (MRS) from point A to point B. 2. What is the Marginal Rate of Substitution (MRS) from point A to point E. 3. Which combination(s) of goods give the consumer the highest level of happiness? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
Katie loves swimming. Every afternoon, she visits the local swimming pool for a swim. The entry cost to the pool costs Katie $10 but she can swim for as long as she wants. Once she has entered the pool and paid the fee, Katie wonders how many hours should she spend swimming if she were to think like an economist. She expects to gain an incremental benefit of $21 from the first hour of swimming, then gains subsequent incremental benefits of $17 from the second, $11 from the third and $4 from the fourth. For every hour spent swimming, it will cost Katie $6 as she could have spent the time doing her homework. In determining how many hours Katie should be swimming, the $10 entry fee to the pool is a/an Type A for Average cost, M for Marginal cost, S for Sunk cost or O for Opportunity cost. Using marginal analysis, what is the optimal amount of hours Katie should spend swimming? The maximum surplus for Katie, from spending the number of hours you found in part b, is $ Answer to the nearest…
Q#9
Mike is pondering what to do for a few free hours on Saturday evening. This is the set of activities he's considering, along with their respective utility levels: activity build a LEGO set go stargazing south of Dexter Lake play a tabletop game with his kids watch a movie with his family prepare Mini-Exam 2 for EC 201 utility 6 utils 9 utils 7 utils 10 utils 2 utils Unfortunately, Mike has only enough time to do at most one of these activities. What is Mike's opportunity cost of deciding to watch a movie with his family?
Suppose Albert's town raises the price of bus tickets from $.50 to $1 and the price of burgers rises from $2 to $4. why is the opportunity cost of bus tickets unchanged? Suppose Albert's weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain.
Chapters 2 1. Suppose Alphonso's town raises the price of bus tickets from $1 to $2 and the price of burgers rises from $2 to $4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso's weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain and sketch the difference graphs.