Question

Under the rationality assumption, could a woman potentially take into account her family’s welfare as well as her own when considering having another child? Explain your reasoning.

Answer 1

No,

Rationality assumption implies that consumer always wants which is a general case. Or we can say she will act in a manner in which is satisfaction will maximize with the minimum cost.

As in the above scenerio when the woman thinks to have one more child , her individual consumption and the consumption of his whole family would decline as the number of members of family increased.

Or we can say that the family size has increased, which will surely reduce the welfare of existing family members