Question
Bonnie's estimates of the marginal benefit of eating different quantities of cheeseburgers in a week are as follows: 1st burger 8.5 2nd burger 7.00 3rd
Bonnie's estimates of the marginal benefit of eating different quantities of cheeseburgers in a week are as follows:
1st burger 8.5
2nd burger 7.00
3rd burger 5.50
4th burger 3.00
5th burger 0.00
Question 1: If each burger costs $4.50, the optimal number of cheeseburgers a week is,
A. 2
B. 3
C. 4
D. 5
Question 2: Which costs should be ignored in decisions about future actions?
A. Sunk cost
B. explicit costs
C. Implicit socks
D. Marginal costs
Question 3: Compared to other regions of the country, a smaller fraction of the land resources is used for agriculture in New England. One reason that there is so little agricultural land left in New England is that,
A. the government is reclaiming the land for urban development.
B. the land has been contaminated by pesticides.
C. there is a large implicit cost of capital in not selling agricultural land to real estate developers.
D. all of the above.
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