Suppose sarah is out at a local club with her friends and finds out that it is "ladies' night" and that all women can drink for free. she knows that if she drinks it will give her immediate pleasure equal to 80.00 utils, but she also knows that if she drinks she will feel bad the next morning and will therefore have a cost of drinking equal to 150.00 utils.
if sarah's discount weight for tomorrow is 0.50, will she drink at the club?
a. no, her net benefit from drinking is negative; therefore, the costs of drinking outweigh the benefits.
b. no, her net benefit from drinking is positive; therefore, the costs of drinking outweigh the benefits.
c. yes, her net benefit from drinking is negative; therefore, the benefits of drinking outweigh the costs.
d. yes, her net benefit from drinking is positive; therefore, the benefits of drinking outweigh the costs.