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When Deciding Whether to Buy a Second Car, Marginal Analysis

Question 35

Multiple Choice

When deciding whether to buy a second car, marginal analysis indicates that the purchaser should compare the:


A) benefits expected from two cars with the cost of both.
B) additional benefits expected from a second car with the cost of the two cars.
C) dollar cost of the two cars with the potential income that the cars will generate.
D) additional benefits of the second car with the additional cost of the second car.

Correct Answer:

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