Asked by Haley Smith on May 25, 2024
Verified
You currently subscribe to two magazines and are trying to decide whether you should subscribe to a third.What should determine your decision if you are economically rational?
A) The total cost of the magazines compared to the total satisfaction you would receive
B) The total amount of satisfaction you would get from the magazines
C) The enjoyment you would get from the third magazine
D) The cost of the third magazine including the time it takes to read it
E) The cost of the third magazine compared to the additional enjoyment you would get from it
Economically Rational
Behavior or decision-making that is based on attempting to achieve the maximum possible benefit while minimizing costs.
Satisfaction
The feeling of pleasure or fulfillment that comes from meeting one's needs, expectations, or goals, often used in the context of customer and employee experiences.
Magazines
Magazines are periodical publications containing articles, stories, and photographs on various subjects, ranging from news, hobbies, to lifestyle topics.
- Gain an understanding of the part predictions play in economic theories and models.
Verified Answer
AM
Alexa MarchandMay 28, 2024
Final Answer :
E
Explanation :
As an economically rational individual, the cost of the third magazine should be compared to the additional enjoyment that it would bring. If the cost of the third magazine outweighs the additional enjoyment, then it would not be a rational decision to subscribe. However, if the cost of the third magazine is reasonable compared to the additional enjoyment, then subscribing to it would be a rational decision.
Learning Objectives
- Gain an understanding of the part predictions play in economic theories and models.