Joshua Murphy is planning on studying late into the night for his economics exam. He is contemplating how many coffees to buy tonight. Joshua should not buy an additional coffee during the evening if the marginal
A)benefit of purchasing one more coffee exceeds 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 not buy an additional coffee during the evening if the marginal benefit of purchasing one more coffee is less than the marginal cost. This means that Joshua should only buy a coffee if the additional benefit he receives from the coffee is greater than the additional cost of buying the coffee. If the marginal benefit is less than the marginal cost, then buying another coffee would not be worth it.

Joshua Murphy Is Planning on Studying Late into the Night