The host at a party offers Justin a sixth beer. Justin says, “No thanks, man. The marginal utility of that fifth beer was, like, 20 cents, but the marginal utility of the sixth would be minus 10 cents.” From his comments, we deduce that Justin
A. is an alcoholic.
B. may think that a sixth beer would make him sick.
C. is irrational.
D. wrongly estimates the marginal utility of the fifth beer.
Answer: B
Economics
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