Joshua Murphy is planning on studying late into the night for his economics exam. How many cups of coffee should he buy tonight? Joshua should keep buying coffee throughout the evening until the marginal:
A)benefit of purchasing one more coffee equals the marginal cost.
B)benefit of purchasing one more coffee is less than the marginal cost.
C)benefit of purchasing one more coffee is positive.
D)cost of purchasing one more coffee is positive.

Question

Quizplus · Accepted Answer

Joshua should keep buying coffee until the marginal benefit of purchasing one more coffee equals the marginal cost. This is because it means he is getting the maximum amount of benefit from each cup of coffee without overspending. Once the marginal benefit of purchasing one more coffee is less than the marginal cost, he would be spending more than he is benefiting, and it would not be an efficient use of his resources.

Joshua Murphy Is Planning on Studying Late into the Night