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You want to sell your old iPad to your cousin, who wants to give you $200 for it. You will have to pay to ship the iPad to your cousin. As a rational decision maker, you should sell your iPad if the shipping fee is ________.a. $350 b. $250. c. $301. d. $299. e. $199

Answer :

jepessoa

Answer:

E) $199

Explanation:

As a rational individual, you should only sell your iPad if the marginal benefit is larger than the marginal cost. In this case the marginal benefit is $200, so the marginal cost must be lower than $200, and only option E ($199) is lower. If the shipping costs were higher than $200, you would be losing money.

*Receiving $1 for an iPad might be rational but not very intelligent.

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