Mary will drive across town to take advantage of a 40 percent off sale on a $40 blouse but will not do so to take advantage of a 10 percent off sale on a $1000 stereo. Assuming that her alternative is to pay list price for both products at the department store next to her home, is her behavior rational?
Answer to relevant QuestionsIn the fall, Crusoe puts 50 coconuts from his harvest into a cave just before a family of bears goes in to hibernate. As a result, he is unable to get the coco-nuts out before the bears emerge the following spring. Coconuts ...A firm’s short- run production function is given by Q = 1/2L2 for 0 ≤ L ≤ 2And Q = 3L – 1/4L2 for 2 < L ≤ 7.a. Sketch the production function. b. Find the maximum attainable production. How much labor is used at ...When Paul Samuelson switched from physics to economics, Robert Solow is said to have remarked that the average IQ in both disciplines went up. A by-stander responded that Solow’s claim must be wrong because it implies that ...The Preservation Embalming Company’s cost data have been partially entered in the table below. Following the sudden and unexpected death of the company’s accountant, you are called on to fill in the missingentries.For the long- run total cost function LTC (Q) = Q2 + 10Sketch ATC, AVC, AFC, and MC.
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