The marginal benefit to you of drinking bottled iced tea is $1.50. If the price of a bottle of iced tea is $1.25, what will you do?
A) If you purchase iced tea you will suffer a net loss of 25 cents per bottle.
B) You will not purchase iced tea if you are acting rationally.
C) If you purchase a bottle of iced tea, the net gain to you from doing so is 25 cents.
D) If you are acting rationally, you will purchase iced tea until the marginal benefit falls to 25 cents.
Correct Answer:
Verified
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