Scenario: Sarah Has to Choose Between Renting a Hotel Room

question 9

Multiple Choice

Scenario: Sarah has to choose between renting a hotel room for 2 days and renting a hotel room for 3 days.
-Refer to the scenario above.Which of the following is true if Sarah is optimizing using total value?

• A) She will rent the hotel room for 3 days if the net benefit of staying for the third day is negative.
• B) She will rent the hotel room for 3 days if the cost of staying for 2 days exceeds the cost of staying for 3 days.
• C) She will rent the hotel room for 3 days if the net benefit of staying for 3 days exceeds the net benefit of staying for 2 days.
• D) She will rent the hotel room for 3 days if the total benefit of staying for 3 days exceeds the total benefits of staying for 2 days.

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Definitions:

Breach

The violation of a law, duty, or other form of obligation, including breaking a contract or agreement.

Duty

A moral or legal obligation to perform an action or uphold a standard of behavior.

Liability

The legal responsibility for one's actions or omissions, potentially resulting in the requirement to compensate for damage or loss.

Constructive Trust

An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property.