A college student decides to spend his afternoon watching three movies rented from Redbox. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the second movie?

Question

Quizplus · Accepted Answer

The marginal benefit is the additional satisfaction or utility received from consuming one more unit of a good or service. In this case, the student was willing to pay $4 for each of the first two movies, so the marginal benefit of renting the second movie is $4 (the cost the student was willing to pay). Therefore, the answer is C) $4.

A College Student Decides to Spend His Afternoon Watching Three