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If the marginal benefit of the next scoop of ice cream is less than the marginal cost, you should:

1) Not buy the next scoop of ice cream
2) Buy the next scoop of ice cream
3) Consider other factors before making a decision
4) Not enough information to determine

Answer :

Final answer:

You should 1) not buy the next scoop of ice cream if the marginal benefit is less than the marginal cost, as it would not be a utility-maximizing decision.

Explanation:

If the marginal benefit of the next scoop of ice cream is less than the marginal cost, you should not buy the next scoop of ice cream. In economic terms, making decisions at the margin means evaluating whether the additional satisfaction (marginal utility) obtained from consuming one more unit of a good or service is greater than the additional cost incurred (marginal cost). Since it is given that the marginal benefit is less than the marginal cost, it implies that the acquisition of the next scoop would not maximize your utility, therefore, it would be rational to refrain from purchasing it.

This concept problems exemplifies an important economic principle: to maximize net benefits, a consumer should continue to consume a product up to the point where the marginal benefit equals the marginal cost. Purchasing beyond that point would lead to a decrease in overall satisfaction or utility, as the additional cost outweighs the benefits received.

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