If Melanie's marginal benefit as a consumer in the jeans market is larger than the price of a pair of jeans,
A) Melanie will not purchase any more jeans.
B) Melanie can benefit by purchasing more jeans.
C) the opportunity cost of a pair of jeans is lower than the price.
D) Melanie will decrease her total utility by purchasing more jeans.

Question

Quizplus · Accepted Answer

When the marginal benefit exceeds the price, Melanie can increase her total utility by purchasing more jeans, as the additional satisfaction from another pair outweighs the cost.

If Melanie's Marginal Benefit as a Consumer in the Jeans