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Suppose Maricella Collects Red Sox Baseball Cards

Question 106

Multiple Choice

Suppose Maricella collects Red Sox baseball cards. She has all but one and is willing to pay a very large sum of money for it. Maricella's preferences


A) contradict the law of diminishing marginal utility because she should be willing to pay a smaller amount of money for the last card.
B) contradict the law of diminishing marginal utility because she should be satiated before she purchases the last card.
C) do not contradict the law of diminishing marginal utility because the law deals with the consumption of exactly identical items in a given period.
D) do not contradict the law of diminishing marginal utility because economic theory still applies when people are irrational.

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