Because people make decisions at the margin, when deciding whether to purchase a second car, they would therefore compare:
A) the dollar cost of having two cars with the potential income the two cars may generate.
B) the additional benefits expected from a second car with the total cost of the two cars.
C) the additional benefits expected from a second car with the additional costs of the second car.
D) None of the answers is correct.

Question

Quizplus · Accepted Answer

When making decisions at the margin, individuals compare the additional benefits of an option with its additional costs. Thus, when deciding on purchasing a second car, they would compare the additional benefits of the second car with its additional costs.

Because People Make Decisions at the Margin, When Deciding Whether