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.
Correct Answer:
Verified
Correct Answer:
Verified
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