Daniel shares a small food truck with his sister. His share of the expenses is $600 per month. He has decided to get his own, newer food truck which he will not have to share with anyone. His expenses for the newer truck are $1 500 per month. Daniel is as rational as any other person. As an economics major, you rightly conclude that:

Question

Quizplus · Accepted Answer

As a rational person, Daniel would only choose to get his own truck if the additional benefit of having his own truck is greater than the additional cost of getting it. His additional cost is $1,500 - $600 = $900 per month. Therefore, the additional benefit must be at least $900 for him to make the decision to get his own truck.

Daniel Shares a Small Food Truck with His Sister