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.

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Definitions:

Personality Traits

Enduring characteristics or qualities that describe an individual's behavior, temperament, and patterns of thinking.

Stable Dispositions

Personality traits or characteristics that remain consistent over time and across situations.

Traits

Inherent characteristics, qualities, or attributes that influence an individual's behavior and personality.

Heredity

The transmission of traits from parents to offspring through genes.