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Suppose the 14.003x TAs are corrupt and will boost your final grade if you pay them a bribe. Your current grade is 80. You are
Suppose the 14.003x TAs are corrupt and will boost your final grade if you pay them a bribe. Your current grade is 80. You are willing to pay up to $20 to boost your grade to 85 (i.e., you would be indifferent between 80 and no bribe and 85 plus a $20 bribe). You pay the bribe. The TAs then offer you a second deal: for an additional $25, they will boost your grade from 85 to 90. You accept. True or False? Your preferences display diminishing MRS
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