According to the principle of marginal decision-making, in order to make the best of any situation a decision-maker should:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aconsider the impact on average costs and benefitsbtake the marginal costs and benefits of the action into accountclook at the total benefits received up to that pointdchoose a consumption level where marginal utility equals priceenever consume a good whose price is less than the marginal utility

Suppose that every morning Samantha buys both tea and coffee. The price of a cup of tea is $1, and the price of a cup of coffee is $2. At her current consumption level, which exhausts all of her income, Samantha’s marginal utility (MU) from drinking the last cup of tea she buys is 50 utils and her marginal utility from drinking the last cup of coffee she buys is 80 utils. To maximize her utility given her current income, Samantha should:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aBuy less tea and more coffeebBuy more tea and less coffeecBuy more of both tea and coffeedNot change her consumption of tea and coffee

Marginal utilitySelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.ais the same as the extra utility from consuming an additional unit of a good.bincreases as more of a good is consumed.cincreases as the total utility of consuming a good increases.dis the same as the utility of consuming a good.eis the same for all units of a good, but it varies from one consumer to another.

A consumer’s budget line depictsSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.athe utility that an individual would receive from consuming various combinations of two goodsbthe combinations of goods that a person can afford at given prices and incomechow changes in income affect utility for given pricesdthe combinations of goods where marginal utility divided by price is the same for all goods

A consumer faces the following situation. Her marginal utility of a luxury good with a price of $100 is 100 utils. An alternative good has a marginal utility of 75 utils and a price of $50. What should she do if she wishes to increase her total utility?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.apurchase fewer of the luxury goods and more of the alternative goodsbpurchase more of the luxury goods and fewer of the alternative goodscpurchase fewer of the luxury goods and fewer of the alternative goodsdpurchase more of the luxury goods and more of the alternative goods

Which of the following is irrelevant when deciding whether to undertake an action?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aopportunity costsbimplicit costscsunk costsdimplicit costs and explicit costseopportunity costs and implicit costs