Author Question: Susan wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of ... (Read 28 times)

james0929 · **on:** Jun 30, 2018

Susan wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at 1.50 per gallon, the car wash costs 1, but if she buys 10 gallons of gasoline, the car wash is free. For Susan, the marginal cost of the tenth gallon of gasoline is:
a. zero. b. 50 cents.
c. 1 d. 1.50.

Question 2

Just before class, Jim tells Stuart, Stuart, you shouldn't skip class today because you have paid tuition to enroll in the class. Stuart ignores Jim's advice, and instead makes the decision of whether to attend based on the importance to his grade that he feels he'd be missing that day in class relative to his value of the extra time he could have to finish the video game he is playing. To an economist, Stuart is:
a. using marginal analysis. b. ignoring the total value of attending class.
c. ignoring the concept of opportunity cost. d. irresponsible.