Maria is a rational consumer with no health insurance.She will use medical care up to the point at which her:

Question

Quizplus · Accepted Answer

Rational consumers make decisions at the margin, maximizing their utility by consuming until the point where the marginal benefit equals the marginal cost. Maria, being a rational consumer, will use medical care up to the point at which her marginal benefit is equal to the marginal cost of medical care. Thus, option C is the best choice. Options A and D are incorrect since total benefit or marginal benefit being equal to zero doesn't make any sense. Option B doesn't make sense either since marginal benefit being zero implies that she won't consume any further medical care which isn't rational.

Maria Is a Rational Consumer with No Health Insurance