If Dalene's marginal benefit from consuming another cookie is greater than the price of the cookie, then
A)Dalene will not purchase any more cookies
B)the opportunity cost of the cookie is lower than the price
C)Dalene's utility will decrease if she purchases the cookie
D)Dalene will increase her total satisfaction by purchasing the additional cookie
E)she has purchased too many cookies

Question

Quizplus · Accepted Answer

If Dalene's marginal benefit from consuming another cookie is greater than the price of the cookie, she will increase her total satisfaction by purchasing the additional cookie. This is because her marginal benefit exceeds the marginal cost (price) of the cookie, and therefore it is rational for her to consume another one.

If Dalene's Marginal Benefit from Consuming Another Cookie Is Greater