When deciding whether to buy a second car, the economic way of thinking indicates that the purchaser should compare
A) the benefits expected from two cars with the cost of both.
B) the additional benefits expected from a second car with the cost of the two cars.
C) the dollar cost of the two cars with the potential income that the cars will generate.
D) the additional benefits of the second car with the additional cost of the second car.

Question

Quizplus · Accepted Answer

The economic way of thinking involves comparing the marginal benefits and marginal costs. In this case, the purchaser should compare the additional benefits of the second car with the additional cost of the second car.

When Deciding Whether to Buy a Second Car, the Economic