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Daniel Shares a Small Food Truck with His Sister

Question 24

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Daniel shares a small food truck with his sister. His share of the expenses is $600 per month. He has decided to get his own, newer food truck which he will not have to share with anyone. His expenses for the newer truck are $1 500 per month. Daniel is as rational as any other person. As an economics major, you rightly conclude that:


A) Daniel cannot afford the newer truck and will have to go back to sharing a truck with his sister.
B) Daniel figures that the additional benefit of having his own truck (as opposed to sharing) is at least $900.
C) Daniel figures that the benefit of having his own truck (as opposed to sharing) is at least $1 500.
D) the cost of having one's own truck outweighs the benefits.

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