1. What decision making concepts have you learned in this class that would assist Mabel make rational decisions?
2. make a table / spreadsheet of fixed and variable costs per month based on Monthly Table of Financial Data. Explain your classification for each item.
3. Does the Monthly Table of Financial Data show the Economic profit per month? If not calculate the monthly economic profit or loss.
4. Acting as Mabel, what financial data will you need to make the decisions?
5. Make a spreadsheet that will help Mabel make the decision on adding an additional student to each lesson.
6. What cognitive biases should Mabel be on the lookout during the decision making process? Explain your reasoning.
7. Are there other alternative choices that Mabel could consider? Make sure to explain likely marginal costs and benefits of the alternatives you mention.
8. Briefly on your learning of rational decision making and its twin human cognitive biases, what are your conclusions on human ability to make rational decisions?