Which of the following decisions is most inconsistent with standard economic assumptions of rational decision-making by economic agents?
A firm operating in a perfectly competitive market raising its price above the market price in order to increase its total revenue
A consumer increasing their consumption of an inferior good following a decrease in their real income
A utility-maximising consumer purchasing a coffee for £4.00£4.00£4.00 after its price rose from £3.50£3.50£3.50, because their marginal utility from that coffee is valued at £4.50£4.50£4.50
A profit-maximising firm continuing to produce in the short run while making subnormal profit, provided the market price is greater than its average variable cost (P>AVCP > AVCP>AVC)
53 exam-style questions on OCR A Level Economics The economic problem. Each one has a worked solution and a mark scheme showing where the marks go.