The marginal benefit of going to a movie during the week is currently $6 for you.Assume that the $4 price of going to the movies measures its marginal cost.Following the economic decision rule, you will:

Question

Quizplus · Accepted Answer

The economic decision rule states that you should continue an activity as long as the marginal benefit exceeds the marginal cost. Here, the marginal benefit ($6) is greater than the marginal cost ($4), so you should continue going to movies until the marginal benefit falls below the marginal cost.

The Marginal Benefit of Going to a Movie During the Week