Ask Question
25 November, 21:12

Suppose that marie is buying bananas. she decides that she would like to purchase three bananas at the price of $0.25/banana but not a fourth banana. which of the five foundations of economics best describes marie's thinking?

+4
Answers (1)
  1. 25 November, 21:31
    0
    we know that

    The fundamental concepts on which economic models (decision-making) are based:

    1) Incentives

    2) Trade-offs

    3) Opportunity cost

    4) Marginal thinking

    5) Trade creates value

    where

    Marginal thinking compare "additional" value of 1 more unit to its price when making purchase decision (not total value/cost of all units)

    In this problem

    Marie is thinking about the extra benefit and cost of purchasing each additional banana. This is what economists would describe as "thinking on the margin," or marginal thinking.

    therefore

    the answer is

    marginal thinking
Know the Answer?
Not Sure About the Answer?
Find 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/banana but not a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers