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The Marginal Cost of a Vacation in the South of France

Question 35

Multiple Choice

The marginal cost of a vacation in the south of France is $4,500.The marginal benefit to Druscilla of a vacation in the south of France is $4,800.


A) Druscilla will lose $300 if she vacations in the south of France.
B) Druscilla will experience a net gain of $300 if she vacations in the south of France.
C) Druscilla will be worse off if she vacations in the south of France.
D) Druscilla will enjoy a net gain of $4,800 if she vacations in the south of France.
E) It is irrational for Druscilla to vacation in the south of France when she can stay home and keep $4,500 in the bank.

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