On a hot sweltering day, you feel thirsty and buy an ice-cold soft drink, which you gulp down. Whether you buy the second drink or not, will depend on
A)how you feel about soft drinks.
B)the total amount of soft drinks that you have consumed that week.
C)the price of the soft drink.
D)the marginal benefit from the second soft drink and if it will outweigh the price of the soft drink.

Question

Quizplus · Accepted Answer

The decision to buy the second soft drink depends on the marginal benefit from drinking it, which means the additional satisfaction that comes from consuming it, compared to the first one, and whether it is worth the price of the soft drink or not. Factors like personal preferences, total consumption of soft drinks, and the general price level of soft drinks may also play a role, but they are not sufficient on their own to determine the optimal choice.

On a Hot Sweltering Day, You Feel Thirsty and Buy