Question

Once a week, Smith purchases a six-pack of cola and puts it in his refrigerator for his two children. He invariably discovers that all six cans are gone on the first day. Jones also purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans. If the children use cost-benefit analysis each time they decide whether to drink a can of cola, explain why the cola lasts much longer at Jones's house than at Smith's.

Answer 1

Answer:

Jones purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans.

Explanation:

Cost-benefit analysis is defined as a method to estimate all the costs involved and possible profits that can be achieved in a business opportunity.

Jones purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans.

So, at Smith's house, there's always a chance that one of the siblings will drink the cola before the other.

Therefore,

cola can lasts much longer at Jones's house than at Smith's.