Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 27

Jessie is considering breaking up with Taylor. Taylor is becoming withdrawn and sullen, and their relationship is deteriorating. When her friends encourage her to make the break, Jessie replies, "Taylor's a lot of work right now-more than I'm getting out of the relationship. But we've been together for five years, and we have a lot of really good history. It'd be a shame to throw those good years away. I'm just going to have to stick it out." Critique Jessie's cost-benefit analysis. Should she make the break?