Susan has a chance to take two weeks of unpaid leave from her job to go on a trip to Antarctica that will cost $5,000. She earns $2,000 per week. She estimates that the trip will be worth twice what she has to pay for the pleasure it will give her. Susan should: continue to collect information because she cannot make a decision now. not take the trip because the cost of the trip is more than her benefit. take the trip because the cost of the trip is less than her benefit. take the trip because you only live once and that's what she prefers.

Question

Business

Captain Crunch

27 February, 09:49

Susan has a chance to take two weeks of unpaid leave from her job to go on a trip to Antarctica that will cost $5,000. She earns $2,000 per week. She estimates that the trip will be worth twice what she has to pay for the pleasure it will give her. Susan should: continue to collect information because she cannot make a decision now. not take the trip because the cost of the trip is more than her benefit. take the trip because the cost of the trip is less than her benefit. take the trip because you only live once and that's what she prefers.

+3

Answers (1)

Know the Answer?

Huber · Answer 1

Take the trip because the cost of the trip is less than her benefit.

Explanation:

Susan should absolutely take the trip because the cost of it is far less than her benefit.

Not only is it because of her personal assessment of the benefit of the trip: she claims that the trip will give her twice the benefit than the total cost of $5,000, but also because the opportunity cost of $4,000 (what she would earn if she continued to work) is not very high.