Carroll’s diner decides to hire a new waitress to out with waiting tables. the new waitress costs the diner $1700 per month. the ability for customers to be served more quickly allows the diner to make an extra $2500 than previously. how do we know that carroll's diner made a rational economic decision? voluntary exchange led to the waitress making $1700 a month. the marginal benefit of $2500 is greater than the marginal cost of $1700 for the new waitress. specialization led to the diner making $2500. none of these; scarcity of resources does not allow for rational decisions to ever be made.

Jamie is saving for a trip to europe. she has an existing savings account that earns 3 percent annual interest and has a current balance of $4,200. jamie doesn’t want to use her current savings for vacation, so she decides to borrow the $1,600 she needs for travel expenses. she will repay the loan in exactly one year. the annual interest rate is 6 percent. a. if jamie were to withdraw the $1,600 from her savings account to finance the trip, how much interest would she forgo? .b. if jamie borrows the $1,600 how much will she pay in interest? c. how much does the trip cost her if she borrows rather than dip into her savings?