Steve currently subscribes to two magazines and is trying to decide whether to subscribe to a third.Which of the following would best determine his decision if he is acting rationally?
A) the total cost of the magazines compared to the total satisfaction Steve would receive
B) the total amount of satisfaction Steve would receive from the magazines
C) the cost of the third magazine, including the time it takes Steve to read it
D) the cost of the third magazine compared to the additional enjoyment Steve would receive from it

Question

Steve currently subscribes to two magazines and is trying to decide whether to subscribe to a third.Which of the following would best determine his decision if he is acting rationally?  
A) the total cost of the magazines compared to the total satisfaction Steve would receive 
B) the total amount of satisfaction Steve would receive from the magazines 
C) the cost of the third magazine, including the time it takes Steve to read it 
D) the cost of the third magazine compared to the additional enjoyment Steve would receive from it

Quizplus · Accepted Answer

When making a rational decision about subscribing to a third magazine, Steve should consider the cost of the magazine compared to the additional enjoyment he would receive from it. Option D best captures this consideration. Option A is also important, but it simply compares the total cost to satisfaction of all three magazines, without factoring in the unique value of the third magazine. Option B is too vague and doesn't take into account the costs involved. Option C only considers the cost of the third magazine and ignores the additional satisfaction Steve could receive from it.

Steve Currently Subscribes to Two Magazines and Is Trying to Decide