Identically furnished one bedroom apartments can be rented either for one week for $100 or a month for $375.Is the one-month rental option a rational strategy?

Question

Quizplus · Accepted Answer

The one-month rental option is a rational strategy because it reduces the amount of searching for both the landlord and the tenant. The landlord doesn't have to spend time and effort finding a new tenant every week, and the tenant doesn't have to spend time searching for a new place to stay every week. Additionally, the cost per week for the monthly rental is $93.75, which is cheaper than the one-week rental option. Therefore, choosing the one-month rental option is a cost-effective solution for both parties involved.

Identically Furnished One Bedroom Apartments Can Be Rented Either for One