Question

soo jin shares a one - bedroom apartment with her classmate. her share of the rent is $800 per month. she is considering moving to a studio apartment which she will not have to share with anyone. the studio apartment rents for $1,100 per month. recently, you ran into soo jin on campus and she tells you that she has moved into the studio apartment. soo jin is as rational as any other person. as an economics student, you rightly conclude that
o the cost of having ones own space outweighs the benefits.
o soo jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $1,100.
o soo jin did not have a choice; her roommate was a slob.
o soo jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $300.

Explanation:

In economics, rational people make decisions by comparing marginal benefits and marginal costs. Soo - Jin was paying $800 for a shared apartment and moved to a $1,100 studio. The additional cost is $1100 - $800=$300. Since she is rational, she must believe the additional benefit of having her own place is at least equal to the additional cost.

Answer:

Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $300.