Suppose the price of a sweater is $15. Julia’s benefit from purchasing each additional sweater isgiven in the table below. Julia gets the most benefitfrom the first sweater and less benefit from eachadditional sweater. If Julia is behaving rationally,how many sweaters will she purchase? [LO 1.2]Marginal benefit ($)1st sweater 502nd sweater 353rd sweater 304th sweater 235th sweater 126th sweater 8
Suppose the price of a sweater is $15. Julia’s benefit from purchasing each additional sweater isgiven in the table below. Julia gets the most benefitfrom the first sweater and less benefit from eachadditional sweater. If Julia is behaving rationally,how many sweaters will she purchase? [LO 1.2]Marginal benefit ($)1st sweater 502nd sweater 353rd sweater 304th sweater 235th sweater 126th sweater 8
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Suppose the price of a sweater is $15. Julia’s benefit from purchasing each additional sweater is
given in the table below. Julia gets the most benefit
from the first sweater and less benefit from each
additional sweater. If Julia is behaving rationally,
how many sweaters will she purchase? [LO 1.2]
Marginal benefit ($)
1st sweater 50
2nd sweater 35
3rd sweater 30
4th sweater 23
5th sweater 12
6th sweater 8
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