The marginal cost of a vacation in the south of France is $4,500. The marginal benefit to Madeline of a vacation in the south of France is $4,800.

Question

The marginal cost of a vacation in the south of France is $4,500. The marginal benefit to Madeline of a vacation in the south of France is $4,800.​

Quizplus · Accepted Answer

The net gain of a vacation is calculated by subtracting the marginal cost from the marginal benefit. In this case, the net gain would be $300 ($4,800 - $4,500), meaning that Madeline would experience a positive gain if she chooses to vacation in the south of France. Therefore, B is the best choice.

The Marginal Cost of a Vacation in the South of France