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taneagle172Lv1
29 Sep 2019
A person has a choice between eating meals at home and eating meals in a restaurant. The cost of the food that is eaten at home is $10 per meal. The cost of a restaurant meal is $20. It takes two hours to eat a meal at home. It takes one hour to eat a meal in a restaurant. The marginal utilities of the home meal and the restaurant meal are the same. The person values time at $12 per hour. What does the theory of consumer behavior suggest rational consumers will decide to do: eat at home or in a restaurant? Answer by first excluding the value of time from the decision, then include the value of time in the decision.
A person has a choice between eating meals at home and eating meals in a restaurant. The cost of the food that is eaten at home is $10 per meal. The cost of a restaurant meal is $20. It takes two hours to eat a meal at home. It takes one hour to eat a meal in a restaurant. The marginal utilities of the home meal and the restaurant meal are the same. The person values time at $12 per hour. What does the theory of consumer behavior suggest rational consumers will decide to do: eat at home or in a restaurant? Answer by first excluding the value of time from the decision, then include the value of time in the decision.
Joshua StredderLv10
29 Sep 2019
