-Refer to the scenario above. If Sarah is optimizing using marginal analysis, then which of the following statements is true?
A) She will rent the hotel room for 3 days if the benefit of staying for the third day exceeds the cost of staying for the third day.
B) She will rent the hotel room for 3 days if the benefit of staying for the third day exceeds the benefits of staying for the first 2 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 cost of staying for the first 2 days is less than the cost of staying for the third day.

Question

-Refer to the scenario above. If Sarah is optimizing using marginal analysis, then which of the following statements is true?
A) She will rent the hotel room for 3 days if the benefit of staying for the third day exceeds the cost of staying for the third day. 
B) She will rent the hotel room for 3 days if the benefit of staying for the third day exceeds the benefits of staying for the first 2 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 cost of staying for the first 2 days is less than the cost of staying for the third day.

Quizplus · Accepted Answer

The Answer is A

-Refer to the Scenario Above