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:

Maximize

The process of increasing a certain outcome or variable to its highest possible level, given a set of constraints.

Total Production

The total output of goods or services produced by an individual firm or an entire industry over a specific period.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as production of a good or service) more efficiently than another activity.

Opportunity Cost

The loss experienced from bypassing the following superior alternative in the course of decision-making.