Carlos buys six new plants for his garden. If he has purchased according to the rational rule, his consumer surplus on the sixth plant is equal to:
A)total benefit minus price.
B)price plus marginal benefit.
C)price minus marginal cost.
D)zero.

Question

Quizplus · Accepted Answer

According to the rational rule for consumers, an individual will continue to purchase a good up to the point where the marginal benefit equals the price. Therefore, for the sixth plant, if Carlos is purchasing according to this rule, the marginal benefit of the sixth plant equals its price, leaving no consumer surplus, which is why the correct answer is zero.

Carlos Buys Six New Plants for His Garden