Multiple Choice
The marginal benefit to you of drinking bottled iced tea is $1.50. If the price of a bottle of iced tea is $1.25, what will you do?
A) If you purchase iced tea you will suffer a net loss of 25 cents per bottle.
B) You will not purchase iced tea if you are acting rationally.
C) If you purchase a bottle of iced tea, the net gain to you from doing so is 25 cents.
D) If you are acting rationally, you will purchase iced tea until the marginal benefit falls to 25 cents.
Correct Answer:

Verified
Correct Answer:
Verified
Q189: How does an economist define a good
Q190: According to the rule of rational choice,
Q191: Which of the following is a statement
Q192: Identify whether each of the following topics
Q193: Marginal cost is the additional cost incurred
Q195: Henry must choose between going to his
Q196: In a market system, how are decisions
Q197: What is the opportunity cost of an
Q198: Which of the following is an example
Q199: You lose $20 from your wallet and