Scenario: Sarah Has to Choose Between Renting a Hotel Room

question 44

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.If Sarah is optimizing using marginal analysis,then which of the following statements is true?

• A) She will rent the hotel room for 3 days if the benefit of staying for the third day exceeds the cost of staying for the third day.
• B) She will rent the hotel room for 3 days if the benefit of staying for the third day exceeds the benefits of staying for the first 2 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 cost of staying for the first 2 days is less than the cost of staying for the third day.