Taryn is buying shirts online and has to decide how many shirts to buy. She should buy another shirt if the
A)marginal benefit of the next shirt is less than the price of the shirt.
B)marginal benefit of the next shirt is at least as high as the price of the shirt.
C)total benefit when purchasing one more shirt is less than the total cost of the shirts.
D)total benefit when purchasing one more shirt is at least as high as the total cost of the shirts.

Question

Quizplus · Accepted Answer

Taryn should only buy another shirt if the marginal benefit (the additional satisfaction or utility gained from having one more shirt) is at least as high as the price of the shirt. If the marginal benefit is lower than the price, then she is essentially paying more for the shirt than it is worth to her.

Taryn Is Buying Shirts Online and Has to Decide How