Question

Marie is buying bananas. She decides that she would like to purchase three bananas at the price of $0.25 per banana, but not a fourth banana.Which of the five foundations of economics,illustrated above, best describes Marie's thinking? Choose one: A. opportunity cost B. trade-offs C. marginal thinking D. trade creates value E. incentives

Answer 1

Answer: Option (C) is correct.

Step-by-step explanation:

Marie's thinking in this question is marginal.

According to the law of diminishing marginal utility, as the consumer consumes more and more units of a commodity the utility derive from the consumption of that goes on diminishing. Therefore, Marie must be thinking about the marginal utility that she gets from the fourth unit of banana.