Christine has purchased five bananas and is considering the purchase of a sixth.It is likely she will purchase the sixth banana if

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, as Christine consumes more bananas, the marginal benefit she gets from each banana will decrease. Hence, for her to purchase the sixth banana, the marginal benefit of consuming it must exceed its price. If the marginal benefit is lower than the price, then she will not purchase it as it will not be worth the additional expenditure. Therefore, option B is the correct choice.

Christine Has Purchased Five Bananas and Is Considering the Purchase