A Buying Situation Can Involve Comparing the Costs and Benefits

Multiple Choice

A buying situation can involve comparing the costs and benefits of substitute items - such as real sugar to the sugar substitute Equal which, although more expensive than sugar, is purchased by many consumers because it contains no calories. This situation involves the consumer considering:

A) a break-even analysis.
B) a marginal analysis.
C) a reference value.
D) a profit equation.