S4. (Figure: The Optimal Quantity) Look at the fngure The Optimal Quanie and the
ID: 1127299 • Letter: S
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S4. (Figure: The Optimal Quantity) Look at the fngure The Optimal Quanie and the If the marginal A) marginal benefit, right, more than B) marginal cost; right; fewer than C) marginal benefit; left, fewer than D) marginal cost; left, more than quantity would figure would shift to the five lawns mowed. S. Pigure: The Optimal Quantity) Look at the figure Thea uny. If she marginal benefit of lawn mowing decreased, the curve in the figure would shift to the and the optimal quantity would be marginal benefit; right, more than marginal cost; right; fewer than marginal benefit; left; fewer than marginal cost; left; more than five lawns mowed. B) C) D) 56. Sunk costs: A) are not considered in marginal analysis. B) help to determine the optimal quantity of an activity. C) can dramatically increase marginal costs D) are the same as variable costs. 57. A person who is risk averse: A) always makes irrational decisions. B) always makes rational decisions. C) is willing to pay to avoid economic loss. D) enjoys taking risks. 58·The "good enough" method of decision making is also called: A) utility-maximizing behavior. B) profit-maximizing behavior C) bounded rationality D) irrational decision making. A) assume that people behave irrationally. B) assume that people behave rationally C) assume that people are reluctant to learn from their mistakes. D) are useless because they use too many simplifying assumptions. 59. Most economic models: Page 13Explanation / Answer
Here questions 54-55 are unanswerable without the figure,so, I am aswering questions 56-59
56.)The correct answer is (A)
The sunk costs are those which once occurred, cannot be recovered back,so they are not considered in marginal analysis.
57.) The correct answer is (C)
A person who is risk-averse, is willing to pay to avoid economics losses.
58.) The correct answer is (C)
The good-enough method of decision making is called Bounded Rationality.
59.) The correct answer is (B)
Most economic models assume that people behave rationally.
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