You want to sell your old iPad to your cousin, who wants to give you $200 for it. You will have to pay to ship the iPad to your cousin. As a rational decision maker, you should sell your iPad if the shipping fee is:
A) $350.
B) $250.
C) $301.
D) $299.
E) $199.

Question

Quizplus · Accepted Answer

The rational decision is to sell the iPad if the shipping fee is less than the amount your cousin is willing to pay ($200). Therefore, if the shipping fee is $199, you would still profit by $1 after shipping costs. Any amount above $200 would result in a loss, making option E the only rational choice.

You Want to Sell Your Old IPad to Your Cousin