Asked by Devyn Smallwood on Jul 13, 2024
Verified
Noncash gift-giving involves value loss when the marginal utility of the gift to the receiver is less than the product price.
Noncash Gift-giving
The act of giving gifts that do not involve direct monetary exchange, emphasizing the value of thoughtfulness and relationships.
Marginal Utility
Marginal utility refers to the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.
- Recognize the economic rationale behind non-cash gift-giving and its impact on utility.
Verified Answer
SJ
sandy jeronimoJul 15, 2024
Final Answer :
True
Explanation :
Noncash gifts can lead to value loss when the recipient values the gift less than its purchase price, indicating a lower marginal utility of the gift to the receiver compared to its cost.
Learning Objectives
- Recognize the economic rationale behind non-cash gift-giving and its impact on utility.