Question

After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?a. The marginal cost of going to Cancun decreases.b. The marginal cost of going to Ft. Lauderdale decreases.c. The marginal benefit of going to Cancun increases.d. The marginal benefit of going to Ft. Lauderdale decreases.

Answer 1

Answer:

B. The marginal cost of going to Ft. Lauderdale decreases.

Explanation:

Consider marginal cost and benefit before making a purchase.

Marginal cost is the increase or decrease of the cost of a particular actions.

Marginal benefit is the increase or decrease of the benefit of the action.

For example, if two items are identical and priced differently, the marginal benefit increases when the lower price is selected.

If two items are similar but not identical you would have to assess the cost and benefits of each more.

If marginal cost exceeds the marginal benefit you shuold not purchase the item or consider another option.

In this case, the only option that may reverse this desition is that the marginal cost of going to Ft. Lauderdale decreases.