Question

Which of the following statements is the economic rule that explains why we stop purchasing goods and services after we have consumed some?

A. We will consume only while marginal benefit exceeds marginal cost.
B. We will purchase goods only while they are marginal.
C. We marginally consume goods and services when the price exceeds the cost.
D. We will consume goods and services whenever the price is low.

Answer 1

The correct answer for the question that is being presented above is this one: "C. We marginally consume goods and services when the price exceeds the cost." The statement that is the economic rule that explains why we stop purchasing goods and services after we have consumed some is that We marginally consume goods and services when the price exceeds the cost.