Question

Manuel needs to move closer to his new job. He has visited available apartments in the desired area and made notes as to the advantages and disadvantages of each apartment. Evaluate each of the following choices and determine what his next step should be based on the decision-making process.

a) Consult with a real estate agent
b) Choose the apartment with the lowest rent
c) Make a decision without further consideration
d) Evaluate the advantages and disadvantages

Answer 1

Manuel should evaluate the advantages and disadvantages of each apartment using a cost/benefit analysis to make a well-informed decision aligned with his overall utility maximization.

Step-by-step explanation:

Manuel is in the process of making an important decision about moving closer to his new job and selecting an apartment. In evaluating his choices, based on the decision-making process, he should ideally opt to evaluate the advantages and disadvantages of each apartment. This includes conducting a cost/benefit analysis where he compares what he will gain against what he will sacrifice. Considering factors like rent, location, accessibility to work, and personal preferences will be important. While consulting with a real estate agent could provide valuable insights and help Manuel make a more informed decision, the step of evaluation should not be skipped. Making a decision without further consideration or choosing just based on the lowest rent might not align with his overall utility maximization and could lead to dissatisfaction in the long term.