Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact
A) is an example of irrational behavior.
B) implies that electronic media sources are displacing print sources for many consumers.
C) contradicts the economic perspective.
D) implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.

Question

Quizplus · Accepted Answer

This fact implies that for most people, the marginal benefit of reading a second newspaper is less than the marginal cost. This means that people do not see enough value in buying and reading a second newspaper as compared to the cost they will have to incur. This could be due to the easy accessibility and abundance of information available on electronic media sources. Hence, the option B also holds true, but D would be a better answer as it directly relates to the behavior of individuals. Option A and Option C are incorrect as irrational behavior is not the only factor at play here, and this fact does not necessarily contradict the economic perspective.

Even Though Local Newspapers Are Very Inexpensive, People Rarely Buy