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Scenario: Frank Has Two Options: Hot Dogs and Ice Cream 810 \frac{8}{10}

Question 54

Multiple Choice

Scenario: Frank has two options: hot dogs and ice cream. Frank derives a current utility of 8 utils from hot dogs and a current utility of 10 utils from ice cream. He also estimates the delayed costs in terms of health effects from both options. The delayed costs from hot dogs are estimated at 14 utils, and the delayed costs from ice cream are estimated at 12 utils.
-Refer to the scenario above.If Frank discounts delayed utilities with a weight of 810 \frac{8}{10} ,then which of the following statements is true?


A) He will consume both hot dogs and ice cream.
B) He will consume hot dogs but will avoid consuming ice cream.
C) He will consume ice cream but will avoid consuming hot dogs.
D) He will avoid consuming both hot dogs and ice cream.

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