Question
For example,if a girl decides that she needs a new pair of earrings for her upcoming plans and she goes to the store to buy
"For example,if a girl decides that she needs a new pair of earrings for her upcoming plans and she goes to the store to buy it. Earrings cost $80 then her MBcould be bigger than MC. But then she found another pair of earrings that were very beautiful but she had not need to buy 2pairs so she would not be willing to spend an extra $80 for the second pair (her MB rating decreasedso MB falls below MC). However, she will probably decide to purchase a second pair for $50 (MC decreased). Therefore, her marginal benefit fallsfrom $80 to $50 from product first to product secondand she will only consider buying more if the MC also decreases.Hence, cost benefit analysis will influence the girl's decision to buy a second product."
Make graph of the example above.
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