If Darlene's marginal benefit from consuming another cookie is greater than the price of the cookie,then _____
A)Darlene will not purchase any more cookies, as the opportunity cost of purchasing another cookie will be more than its price.
B)Darlene will purchase more cookies as her total utility is zero.
C)Darlene will purchase more cookies, as her marginal utility will decrease with the additional purchase.
D)Darlene will purchase more cookies, as her marginal utility will increase with the additional purchase.
E)Darlene will not purchase any more cookies ,as a reallocation of her budget will decrease her utility.

Question

Quizplus · Accepted Answer

When the marginal benefit (or marginal utility) of consuming another cookie is greater than its price, it implies that Darlene gains more satisfaction from consuming the cookie than what it costs her. This encourages her to buy more cookies, even though each additional cookie might bring less satisfaction than the previous one, indicating diminishing marginal utility.

If Darlene's Marginal Benefit from Consuming Another Cookie Is Greater