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Assume that an individual has to decide between a two-day vacation and a three-day vacation to the ...

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Assume that an individual has to decide between a two-day vacation and a three-day vacation to the ...

Assume that an individual has to decide between a two-day vacation and a three-day vacation to the same place. If he uses optimization in differences, he will:
A) only think about the net benefits of the extra day.
B) compare the total net benefits of both alternatives.
C) choose the three-day vacation only if the costs incurred on the third day exceed the benefits he receives.
D) spend more time to come to a decision than if he would have used optimization in levels.

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Microeconomics

Edition: 1^st

Authors: Acemoglu, Laibson, List

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