Question
Bronwyn is a rational person and voluntarily buys a Banh Mi for $8 and consumes it. a.Explain why the benefit Bronwyn receives from the Banh
Bronwyn is a rational person and voluntarily buys a Banh Mi for $8 and consumes it.
a.Explain why the benefit Bronwyn receives from the Banh Mi is less than, equal to or greater than $8.
b.Explain why Bronwyn's net-benefit of purchasing and consuming the Banh Mi is negative, positive or equal to zero.
Bronwyn's friend, Ying is also rational but chooses not to purchase the Banh Mi for $8. Suppose Ying is given a Banh Mi for free and decides to eat it.
c.Explain why Ying's net-benefit of consuming the Banh Mi is negative, positive or equal to zero.
d.Explain why Ying's benefit of consuming the Banh Mi is less than, equal to or greater than $8 and why it is less than, equal to or greater than zero.
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