Business, 20.02.2020 22:01 samiller30

Soo Jin shares a one-bedroom apartment with her classmate. Her share of the rent is $700 per month. She is considering moving to a studio apartment which she will not have to share with anyone. The studio apartment rents for $950 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 major, you rightly conclude that...
1) Soo Jin did not have a choice; her roommate was a slob.
2) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $250.
3) Soo Jin figures that the benefit of having her own place (as opposed to sharing) is at least $950.
4) The cost of having one's own space outweighs the benefits.

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Soo Jin shares a one-bedroom apartment with her classmate. Her share of the rent is $700 per month....

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