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

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The consumer decides to buy more life insurance when the marginal benefit of additional coverage exceeds the marginal cost, indicating that the perceived value or utility gained from the extra insurance is greater than the cost incurred.

From an Economic Perspective, When a Consumer Decides to Buy