Question: 3. Determine whether the following statements better describe optimization using total value or optimization using marginal analysis. a. John is attempting to decide on a

 3. Determine whether the following statements better describe optimization using total

value or optimization using marginal analysis. a. John is attempting to decide

3. Determine whether the following statements better describe optimization using total value or optimization using marginal analysis. a. John is attempting to decide on a movie (all movies have the same ticket price). He determines that the new Batman movie provides him with comparatively more of a benefit than the new Spiderman movie and that both the Batman and Spiderman movies have comparatively more of a benefit than the new Superman movie. b. Marcia finds that the net benefit of flying from Chicago to Honolulu on a non-stop United Airlines flight is $400, and the net benefit of the same trip flying on a one-stop American Airlines flight is $200. c. Nikki decided to jog 3 miles for exercise by reasoning that a 3-mile jog was better than either a 2-mile jog or a 4-mile jog. d. At a yard sale, Reagan calculated that she was willing to pay $200 for a queen bed that was being sold for $100 (generating net benefit of $100) and that she was willing to pay $220 for a king bed that was being sold for $300 (generating net benefit of -80)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!