You currently subscribe to two magazines and are trying to decide whether you should subscribe to a third. What should determine your decision, if you are rational?
a. the total cost of the magazines compared to the total satisfaction you would receive
b. the total amount of satisfaction you would get from the magazines
c. the enjoyment you would get from the third magazine
d. the cost of the third magazine, including the time it takes to read it
e. the cost of the third magazine compared to the additional enjoyment you would get from it
Question 2
A rational decision maker will take only those actions for which the expected marginal benefit
a. is positive
b. is at its maximum level
c. is greater than or equal to the expected marginal cost
d. is less than the expected marginal cost
e. exactly equals the expected marginal cost
