Asked by Marina Carosella on Jun 15, 2024
Verified
Most people do not steal, because
A) stolen goods are subject to the law of diminishing marginal utility.
B) the marginal utilities of stolen goods are negative.
C) their marginal costs, including guilt costs, are too high.
D) stolen goods can only be sold at deep discounts.
Law of Diminishing
Refers to the principle that as the quantity of a good or input increases, holding all else constant, the added benefit from an additional unit will eventually decline.
Marginal Costs
The increase in total cost that arises from producing one more unit of a product or service.
Stolen Goods
Items that have been taken without permission or acquired through illicit means, with ownership not legally transferred.
- Acquire insight into the economic motives driving gift-giving, theft, and behaviors observed in markets.
Verified Answer
MJ
Myrline JosephJun 16, 2024
Final Answer :
C
Explanation :
Most people refrain from stealing because the marginal costs of doing so, which include potential guilt and other psychological or social costs, outweigh the benefits they might gain from the stolen goods.
Learning Objectives
- Acquire insight into the economic motives driving gift-giving, theft, and behaviors observed in markets.