Question
Course: Microeconomics - Ch. 1 Thinking like an economist - Robert Frank You just bought a new Ford Taurus for $20,000, but the most you
Course: Microeconomics - Ch. 1 Thinking like an economist - Robert Frank You just bought a new Ford Taurus for $20,000, but the most you could get for it if you sold it is $15,000. You learn that Toyota offers its Camry model that normally sells for $25,000 at a special price of $20,000. If you had known before you bought the Taurus that you could buy the Camry for the same price, you would clearly have chosen the Camry. True or False? Judging by your preferences, it follows that if you are a RATIONAL UTILITY MAXIMIZER, it's clear that you should NOT sell the Taurus and buy the Camry. Explain your answer.
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