Question
A buyer has purchased three pairs of shoes. The fourth pair costs $90 and the buyer estimated that it is worth at least 90 dollars
A buyer has purchased three pairs of shoes. The fourth pair costs $90 and the buyer estimated that it is worth at least 90 dollars in terms of marginal benefits. Which of the following statements is correct?
Select one:
a. The buyer should not buy the fourth pair as the marginal cost of the fourth pair is high.
b. The buyer should not buy the fourth pair as buying the fourth pair will increase total costs by more than total benefits
c. The buyer should buy the fourth pair as the marginal benefit is at least equal to the marginal cost.
d. The buyer should buy the fourth pair as buying the fourth pair will increase total benefits by less than total costs.
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