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 fourth banana. Which of the five foundations of economics, illustrated above, best describes Marie’s thinking?

Answer 1

Answer:

Marginal thinking

Explanation:

The economic foundation of marginal thinking requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost. And according to this principle, Marie´s benefits of the first three bananas is higher than its cost, but the fourth banana will provide less benefit than the third and this is less than it cost.