From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the
A) marginal cost of more insurance coverage is negative.
B) marginal benefit of more insurance coverage is greater than zero.
C) marginal benefit of more insurance coverage is greater than the marginal cost.
D) marginal cost of more insurance coverage is equal to the payment for the extra coverage.

Question

Quizplus · Accepted Answer

The consumer decides to buy more life insurance when the perceived marginal benefit of additional coverage exceeds the marginal cost, indicating a net gain in utility or satisfaction.

From an Economic Perspective, When a Consumer Decides to Buy