Options:
A. is an example of irrational behavior.
B. implies that electronic media sources are displacing print sources for many consumers.
C. contradicts the economic perspective.
D. implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost
Answer:
implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost
Explanation:
Remember, the law of marginal utility (benefit). In this scenario even though the local newspapers are very inexpensive, and still people rarely buy more than one of them each day, a likely reason for this is that they are satisfied with buying just a copy of the newspaper.
In other words, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.
