Assume That an Individual Has to Choose Between Two Options,buying

question 42

Essay

Assume that an individual has to choose between two options,buying a cell phone or buying an iPad.The expected cost of buying a phone is $700 and the expected benefit is $900.The expected cost of buying an iPad is $300 and the expected benefit is $600.How does the individual arrive at the optimal choice if he implements:
a)optimization using total value?
b)optimization using marginal analysis?

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Definitions:

MDMA

A synthetic drug known as 3,4-methylenedioxymethamphetamine, primarily used for its euphoric and empathogenic effects.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, playing a role in mood regulation, appetite, and sleep.

Ecstasy

A psychoactive drug primarily used for recreational purposes, known scientifically as MDMA, which induces feelings of increased energy, euphoria, emotional warmth, and distortions in sensory and time perception.

Amphetamines

One type of stimulant drug.