Mark loves ice cream. At any point in time, he will buy an additional ice cream cone if
A) the marginal benefit from it is zero.
B) there is no deadweight loss produced by his purchase of a cone.
C) the marginal benefit from it exceeds the price.
D) his willingness to pay is less than the price.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Mark will only buy an additional ice cream cone if the marginal benefit (satisfaction) he receives from it exceeds the price he has to pay for it. This is because he wants to maximize his overall satisfaction (utility) from consuming ice cream, and purchasing a cone only makes sense if it provides him with more satisfaction than the price he has to pay.

Mark Loves Ice Cream