You want to sell your old iPad that you no longer use,and your cousin wants to give you $300 for it.If you decide to sell your iPad to your cousin,you'll have to pay $40 for shipping the iPad to your cousin.As a rational decision maker,you should:
A)sell it because the marginal benefit is smaller than the marginal cost.
B)not sell it because the marginal benefit is smaller than the marginal cost.
C)sell it because the marginal benefit is greater than the marginal cost.
D)not sell it because the marginal benefit is greater than the marginal cost.
E)sell it because the marginal benefit is equal to the marginal cost.

Question

Quizplus · Accepted Answer

Selling the iPad to your cousin for $300 will provide a marginal benefit of $300. However, there is a marginal cost of $40 for shipping the iPad. As long as the marginal benefit (MB) is greater than the marginal cost (MC), it is rational to sell the iPad. Thus, in this case, MB ($300) > MC ($40), so it makes sense to sell it to your cousin.

You Want to Sell Your Old IPad That You No