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Assume that an individual has to decide between a 2-day vacation and a 3-day vacation to the same ...

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Assume that an individual has to decide between a 2-day vacation and a 3-day vacation to the same ...

Assume that an individual has to decide between a 2-day vacation and a 3-day vacation to the same place. If he uses optimization using marginal analysis, he will ________.

▸ compare the total net benefits of both alternatives

▸ spend more time to make a decision than he would had he used optimization using total value

▸ only think about the net benefits of the extra day

▸ choose the 3-day vacation only if the costs incurred on the third day exceed the benefits he receives

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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