The Surprising Observation That Houses in Cold Climates Have Higher

Multiple Choice

The surprising observation that houses in cold climates have higher inside temperatures is consistent with the competitive model because:

A) people will act to equalize the marginal costs of heating across climates.
B) houses in warm climates have higher marginal costs of heating.
C) houses in warm climates have more insulation.
D) people in warm climates care less about temperature.