Suppose you could quantify the amount of satisfaction you receive from consuming ice cream in money terms. You might say, "I expect to get $3 worth of satisfaction from this ice cream cone." According to traditional economic theory, if the price of this ice cream cone were $3.05, would you buy one?

No, since the marginal cost of consuming the ice cream cone is greater than the marginal benefit.

Explanation:

Marginal utility is the benefit that a consumer derives from consuming an extra unit of a product. To maximise satisfaction consumers tend to go for products that will give them high satisfaction at a low cost.

In the given scenario the cost of a unit of ice cream cone is $3.05, and the satisfaction or benefit is $3. The cost is higher than satisfaction gained. A consumer will not buy the ice cream under these conditions. They will rather look for an alternative that will give high satisfaction at low cost.

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