Author Question: The marginal benefit to you of drinking one more bottled iced tea is 1.50 . The price of a bottle of ... (Read 119 times)

ARLKQ · **on:** Jun 30, 2018

The marginal benefit to you of drinking one more bottled iced tea is 1.50 . The price of a bottle of iced tea is 1.25.
a. If you purchase iced tea you will suffer a net loss of 25 cents per bottle.
b. If you purchase a bottle of iced tea, the net gain to you from doing so is 25 cents.
c. You will not purchase iced tea if you are acting rationally.
d. If you are acting rationally, you will purchase iced tea until the marginal benefit falls to 25 cents.

Question 2

If the educational attainment of a nation's population increases, the economy's production possibilities curve shifts inward.
a. True
b. False
Indicate whether the statement is true or false