Question

Assume you are considering buying some identical fountain pens and you have all the information that you needed to find your optimal quantity demanded from these fountain pens. Which of the following should guarantees you are reaching to the optimal quantity demanded from these fountain pens? (Think Carefully).

Question 19 options:

	Your marginal benefit is at least equal to the marginal cost, if not smaller than the marginal cost.
	Your marginal benefit is at least greater than the marginal cost, if not equal to the marginal cost.
	Your marginal benefit is at least equal to the marginal cost, if not greater than the marginal cost.
	Your marginal benefit is at least smaller than the marginal cost, if not equal to the marginal cost.

Answer 1

Considering buying some identical fountain pens.All the information that needed to find optimal quantity demanded from these fountain pens are given.

The statement which should guarantees reaching to the optimal quantity demanded from these fountain pens is:

• Your marginal benefit is at least equal to the marginal cost, if not greater than the marginal cost.

Explanation:

For buying identical items the consumer always prefer to gain extra unit of benifit over extra unit of cost.The optimal point is where the marginal benefit curve intersects the marginal cost curve.