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Fiesta28 [93]
3 years ago
14

George would like to be financially protected from unexpected malfunctions and maintenance costs associated with his new dishwas

her, but not so strongly that he is willing to pay $50 per month for an insurance policy. In George's case,
he is indifferent between purchasing insurance and not
the perceived benefit of the policy is greater than the cost
C. the cost of the policy exceeds George's perceived benefit
the cost of the policy is less than George's perceived benefit

C is correct
Social Studies
2 answers:
nalin [4]3 years ago
8 0
The answer would be : cost of the policy exceeds george's perceived benefit.

According to George's point of view, paying $50 of insurance per month may even be more than the cost of a new dishwasher itself

hope thsi helps
erma4kov [3.2K]3 years ago
8 0

Answer:

C. the cost of the policy exceeds George's perceived benefit

Explanation:

In microeconomic theory, there is a concept called reserve price. The reserve price is the maximum price at which a consumer is willing to pay to obtain the benefit of the purchase of a product or service. If George has decided not to buy the insurance, even though he considers it important, it means that the price of the insurance policy is greater than George's reserve price for insurance. In short, the cost of politics goes beyond the benefit perceived by George.

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