Question
Question 1 - 20 marks (1-3 sentences per section) Bronwyn is a rational person and voluntarily buys a Banh Mi for $8 and consumes it.
Question 1 - 20 marks (1-3 sentences per section) 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. (5 marks) b. Explain why Bronwyns net-benefit of purchasing and consuming the Banh Mi is negative, positive or equal to zero. (5 marks) Bronwyns 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 Yings net-benefit of consuming the Banh Mi is negative, positive or equal to zero. (5 marks) d. Explain why Yings 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. (5 marks)
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