Ask Question
BusinessBusiness
30 October, 00:14

Suppose that 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 best describes Marie's thinking?

+1
Answers (1)
  1. 30 October, 02:11
    0
    Marginal Thinking

    Explanation:

    The economic principle of marginal thinking means that rational people (people who act in a way that maximizes their personal well-being) think and take decisions at the margin.

    From the concept of marginal thinking, we derive concepts such as marginal utility, which is the extra benefit that a person obtains from the consumption of one extra unit of a good, and marginal cost, which is the extra cost a person must pay from the consumption of one more unit of a good.

    If the marginal cost is higher than the marginal benefit, a rational person decides not to consume the good.

    Marie is affected by marginal utility and marginal cost because while she considers that three bananas for $0.25 is a deal that benefits her, a fourth banana would represent a marginal utility that is less than the marginal cost, thus, she decides not to buy the fourth banana.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that 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 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A collection of related activities that produce a produce or service of value to an organization is known as a business alignment True False
Answers (1)
Which one of the following is true about risk and return? A) Riskier assets will, on average, earn lower returns. B) The reward for bearing risk is known as the standard deviation. C) Based on historical data, there is no reward for bearing risk.
Answers (1)
One common error in reasoning with economic models is the
Answers (1)
your experience indicates that offering a discount in your email increases responses by 75% year last email without a discount you got 19 thousand responses if you mail the same size list and offer discount how many responses would you expect?
Answers (1)
A stock is currently priced at $52.50 a share. One year from now, the stock price is expected to be either $54 or $60 a share. The risk-free rate of return is 4 percent. What is the value of a 1-year call option with an exercise price of $55
Answers (1)
New Questions in Business
What are the two main purposes that companies use social media?
Answers (1)
Which account will give you least access to your money?
Answers (1)
You decide to start a business selling covers for smart phones in a mall kiosk. to buy inventory, you need to borrow some funds. why are you more likely to take out a bank loan than to issue bonds
Answers (1)
Clothing Frontiers began operations on January 1 and engages in the following transactions during the year related to stockholders' equity. January 1 Issues 500 shares of common stock for $30 per share.
Answers (1)
On January 1, Year 1, Bell Corp. issued $340,000 of 10-year, 8 percent bonds at their face amount. Interest is payable on December 31 of each year with the first payment due December 31, Year 1.
Answers (1)
Home » Business » Suppose that 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 best describes Marie's thinking?
Sign Up Forgot Password?