Once a week, Smith purchases a six-pack of cola and puts it in his refrigerator for his
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Once a week, Smith purchases a six-pack of cola and puts it in his refrigerator for his two children. He invariably discovers that all six cans are gone on the first day. Jones also purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans per week. If the children use cost-benefit analysis each time they decide whether to drink a can of cola, explain why the cola lasts much longer at Jones’s house than at Smith’s. (LO4)
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Related Book For
Principles Of Macroeconomics
ISBN: 9781259414367
6th Edition
Authors: Robert Frank, Ben Bernanke, Kate Antonovics
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