Ryan is deciding between attending Western State University and Eastern State University. He cannot attend both universities simultaneously. Both are fine universities, but the reputation of Western is slightly higher, as is the tuition. Let MUE and MUW be Ryan's marginal utilities from attending Eastern and Western State Universities respectively and PE and PW be the prices of attending Eastern and Western State Universities. Using the rule of consumer optimum, Ryan will decide to

Question

Ryan is deciding between attending Western State University and Eastern State University. He cannot attend both universities simultaneously. Both are fine​ universities, but the reputation of Western is slightly​ higher, as is the tuition. Let MUE and MUW be​ Ryan's marginal utilities from attending Eastern and Western State Universities respectively and  PE and PW be the prices of attending Eastern and Western State Universities. Using the rule of consumer​ optimum, Ryan will decide to

Part 2
A.
attend Western State​ University, since it gives him more utility.

B.
attend Western State​ University, if  PE/ MU E less than PW / MUW
.
C.
attend Eastern State​ University, if MU E/PE is less than  MUW/PW
.
D.
attend Eastern State​ University, if  MUE/PE exceeds MUW/PW
.

GPT 3.5 · Answer

C. attend Eastern State​ University, if MU E/PE is less than MUW/PW.