Tom has said he would be willing to drive across town in order to save $10 on

Question:

Tom has said he would be willing to drive across town in order to save $10 on the purchase price of a $20 clock radio. If Tom is rational, this implies that he

a. Believes that the opportunity cost of the trip is not more than $10.

b. Should also drive across town to save $10 on a $500 television set.

c. Should not drive across town to save $10 on a $500 television set.

d. Should drive across town only if the savings on a $500 television set is at least $250.

e. More than one of the above are correct.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Economics

ISBN: 9781266052309

8th Edition

Authors: Robert H. Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz

Question Posted: