Scenario: Sarah has to choose between renting a hotel room for 2 days and renting a hotel room for 3 days.
-Refer to the scenario above.Which of the following is true if Sarah is optimizing using total value?
A) She will rent the hotel room for 3 days if the net benefit of staying for the third day is negative.
B) She will rent the hotel room for 3 days if the cost of staying for 2 days exceeds the cost of staying for 3 days.
C) She will rent the hotel room for 3 days if the net benefit of staying for 3 days exceeds the net benefit of staying for 2 days.
D) She will rent the hotel room for 3 days if the total benefit of staying for 3 days exceeds the total benefits of staying for 2 days.

Question

Quizplus · Accepted Answer

Sarah is optimizing using total value, which means she wants to maximize the net benefit she gets from renting the hotel room. Therefore, she will choose the hotel room option that gives her the highest net benefit. Option C states that she will choose to rent the hotel room for 3 days if the net benefit of staying for 3 days exceeds the net benefit of staying for 2 days, which is the goal of optimizing for total value.

Scenario: Sarah Has to Choose Between Renting a Hotel Room