According to the cost-benefit principle,the incentive to save $10 on a product is
A) directly dependent on the price of the product.
B) purely a question of whether it is worth it to do what is necessary to receive the $10 of savings.
C) stronger if the $10 is a large percentage of the list price of the product.
D) inversely related to the price of the product.
E) weaker if the $10 is a small percentage of the list price of the product.

Question

Quizplus · Accepted Answer

The cost-benefit principle states that individuals will take an action if and only if the benefit exceeds the cost. Therefore, the incentive to save $10 on a product will depend on whether the individual perceives the effort required to obtain the savings to be worth the benefit of the savings, regardless of the price of the product or the percentage of the savings compared to the list price.

According to the Cost-Benefit Principle,the Incentive to Save $10 on a Product