For each situation below, EXPLAIN if the decision-making follows optimization in levels or optimization in differences. Be sure to explain in each case.
a. John is attempting to decide on a movie. He determines that the new Batman movie provides him with $10 more of a benefit than the new Spiderman movie.
b. Marcia finds that the net benefit of flying from Chicago to Honolulu on a non-stop United Airlines flight is $400, and the net benefit for the same trip flying on a one-stop American Airlines flight is $200.
c. Nikki decided to take the first available parking space as she entered the student lot. She felt that the first available space had a $5 premium compared with all other possible spaces because she did not want to risk being late for her exam.
d. Reagan determined that the net benefit of taking the combination of two lecture courses and an online lecture course was $100. The same three courses online gave her a net benefit of $80, and all three in a lecture-based format gave her a net benefit of $10.
For each situation below, EXPLAIN if the decision-making follows optimization in levels or optimization in differences. Be sure to explain in each case.
a. John is attempting to decide on a movie. He determines that the new Batman movie provides him with $10 more of a benefit than the new Spiderman movie.
b. Marcia finds that the net benefit of flying from Chicago to Honolulu on a non-stop United Airlines flight is $400, and the net benefit for the same trip flying on a one-stop American Airlines flight is $200.
c. Nikki decided to take the first available parking space as she entered the student lot. She felt that the first available space had a $5 premium compared with all other possible spaces because she did not want to risk being late for her exam.
d. Reagan determined that the net benefit of taking the combination of two lecture courses and an online lecture course was $100. The same three courses online gave her a net benefit of $80, and all three in a lecture-based format gave her a net benefit of $10.
