Henry wants to buy a book.The economic perspective suggests that Henry will buy the book if:
A) the book will give him utility.
B) his income is high.
C) the marginal cost of the book is greater than its marginal benefit.
D) the marginal benefit of the book is greater than its marginal cost.

Question

Quizplus · Accepted Answer

The economic perspective suggests that an individual like Henry will buy a good or service if the marginal benefit (the additional benefit he gains from consuming one more unit of the good) exceeds the marginal cost (the additional cost of producing one more unit). Therefore, the best answer is D as it states that Henry will buy the book if the marginal benefit of the book is greater than its marginal cost.

Henry Wants to Buy a Book