Damian shares a small food truck with his sister.His share of the expenses is $500 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 $1,400 per month.Damian is as rational as any other person.As an economics major, you rightly conclude that

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As a rational person, Damian would only make a decision if the additional benefits of having his own truck are greater than the costs. Since his expenses for the newer truck are $1,400 per month while his expenses for the shared truck with his sister is $500 per month, his additional cost for having his own truck is $900. Therefore, Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least $900. Choosing the newer truck will depend on whether the added benefits outweigh the added costs.

Damian Shares a Small Food Truck with His Sister