Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie. Leann is making
A)a decision that is not on the margin because she will see the entire movie.
B)a decision that does not involve an opportunity cost.
C)a rational decision if her marginal cost from the movie is greater than her marginal benefit.
D)an irrational decision because studying is more important than watching a movie.
E)a rational decision if her marginal benefit from the movie is greater than her marginal cost.

Question

Quizplus · Accepted Answer

Leann is making a rational decision if the marginal benefit she gains from watching the movie exceeds the marginal cost, which in this case is the opportunity cost of not studying.

Instead of Studying for an Additional Two Hours for the Economics