Question

If someone pays 50 for a pair of shoes, and the actual price of the shoes is30, what is their marginal benefit?

1) 20
2) 30
3) 50
4) Cannot be determined

Answer 1

The marginal benefit of paying $50 for shoes priced at $30 cannot be determined without additional information on personal valuation, as the marginal benefit is subjective and related to individual utility rather than just monetary cost.

Step-by-step explanation:

When someone pays $50 for a pair of shoes, and the actual price of the shoes is $30, the marginal benefit cannot be determined with the information provided. Marginal benefit typically refers to the additional benefit received by consuming one more unit of a good or service, and without understanding the individual's valuation of the shoes, we cannot quantify the marginal benefit.

The options provided (20, 30, 50, Cannot be determined) reflect potential differences in cost or value, but marginal benefit relates to the personal satisfaction or utility gained, which is subjective and not solely determined by price.