Author Question: While waiting in line to buy one cheeseburger for 1.50 and a medium drink for 1.00, Sally notices ... (Read 26 times)

neverstopbelieb · **on:** Jun 30, 2018

While waiting in line to buy one cheeseburger for 1.50 and a medium drink for 1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for 2.75 . She thinks to herself, Is it worth the extra 25 cents to get the medium fries? To an economist, Sally's decision is an example of:
a. marginal analysis.
b. basing decisions on total, rather than marginal, value.
c. an unintended consequence.
d. the fallacy of composition.

Question 2

While waiting in line to buy a cheeseburger for 2 and a drink for 75 cents, Aaron notices that the restaurant has a value meal containing a cheeseburger, drink, and French fries for 3 . For Aaron, the marginal cost of purchasing the French fries:
a. would be zero.
b. would be 25 cents.
c. would be 50 cents.
d. cannot be determined because the information about the price of the French fries is not provided.