From an economic perspective,when a consumer decides to buy more life insurance,the consumer has most likely concluded that the:
A) marginal costs of more insurance coverage have increased.
B) marginal benefits of more insurance coverage have decreased.
C) marginal benefits of more insurance coverage are greater than the marginal costs.
D) opportunity costs of more insurance coverage are greater than the payment for more insurance coverage.

Question

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The consumer's decision to buy more life insurance indicates that the marginal benefits of more insurance coverage are greater than the marginal costs. In other words, the consumer believes that the additional coverage is worth the additional premium payments. If the marginal costs of more insurance coverage had increased or the marginal benefits had decreased, the consumer would be less likely to purchase more coverage. Similarly, if the opportunity costs of more insurance coverage were greater than the payment for more insurance coverage, the consumer would also be less likely to purchase more coverage.

From an Economic Perspective,when a Consumer Decides to Buy More