When Andrew buys purple boxer shorts at Nia's store for $20,
A) Andrew's marginal benefits must be at least $20.
B) Nia's marginal opportunity costs must greater than $20.
C) Nia's marginal benefits from the $20 must be less than from the boxer shorts.
D) Andrew's marginal opportunity costs must be greater than $20.
E) this is an involuntary exchange because Andrew wouldn't be caught dead in purple boxer shorts.

Question

Quizplus · Accepted Answer

Andrew's willingness to pay $20 for the boxer shorts indicates that his marginal benefits from acquiring them are at least $20, as he values the shorts at this price or higher to make the purchase.

When Andrew Buys Purple Boxer Shorts at Nia's Store for $20