You Currently Subscribe to Two Magazines and Are Trying to Decide

question 16

Multiple Choice

You currently subscribe to two magazines and are trying to decide whether you should subscribe to a third.What should determine your decision, if you are rational?

• A)the total cost of the magazines compared to the total satisfaction you would receive
• B)the total amount of satisfaction you would get from the magazines
• C)the enjoyment you would get from the third magazine
• D)the cost of the third magazine, including the time it takes to read it
• E)the cost of the third magazine compared to the additional enjoyment you would get from it

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Definitions:

Demanded Design

A design approach or product feature specifically requested or sought after by consumers or the market.

Consumer Surplus

The variance between the amount consumers are ready to spend on a good or service and the actual amount they pay.

Efficiency

The degree to which resources are used effectively and waste is minimized, often aiming at maximizing output from given inputs.

Highest-value Bidder

The participant in an auction willing to pay the most for the item up for bid.