Suppose You Could Quantify the Amount of Satisfaction You Receive

question 97

Multiple Choice

Suppose you could quantify the amount of satisfaction you receive from consuming ice cream in money terms. You might say, "I expect to get $3 worth of satisfaction from this ice cream cone." According to traditional economic theory, if the price of this ice cream cone were $3.25, would you buy one?

• A)Ye, since the marginal benefit from consuming the ice cream cone is greater than the marginal cost.
• B)Yes, since the marginal cost of consuming the ice cream cone is greater than the marginal benefit.
• C)No, since the marginal cost of consuming the ice cream cone is greater than the marginal benefit.
• D)No, since the marginal benefit from consuming the ice cream cone is greater than the marginal cost.