Question

A date with Alex costs you $100 and gives you an additional 1000 units of utility. A date with Kelly costs you $200 and an additional 4,000 units of utility. Based only on the information you have, using the theory of rational choice, you most likely would:

Answer 1

Based only on the information you have, using the theory of rational choice, you most likely would:

O date Kelly.

Step-by-step explanation:

a) Data and Calculations:

Cost of date with Alex = $100

Marginal utility with Alex = 1,000 units

Marginal utility cost with Alex per unit = $0.10 ($100/1,000)

Cost of date with Kelly = $200

Marginal utility with Kelly = 4,000 units

Marginal utility cost with Kelly per unit = $0.05 ($200/4,000)

b) The theory of rational choice states that individuals are more likely to make choices to satisfy their self-interests and provide them with the greatest benefit. This implies that people weigh their options and make decisions that serve them best.