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 does not involve an opportunity cost.
B) a rational decision if her marginal cost from the movie is greater than her marginal benefit.
C) a rational decision if her marginal benefit from the movie is greater than her marginal cost.
D) an irrational decision because studying is more important than watching a movie.
E) a decision that is not on the margin because she will see the entire movie.

Question

Quizplus · Accepted Answer

Leann is making a rational decision if her marginal benefit from the movie is greater than her marginal cost. In other words, if the enjoyment or relaxation she will get from watching the movie is worth more to her than the additional knowledge or grade improvement she could gain from studying for an additional two hours, then watching the movie is the rational choice for her. This decision involves an opportunity cost (not studying), but it is not considered irrational unless the opportunity cost of not studying outweighs the benefits of watching the movie for Leann.

Instead of Studying for an Additional Two Hours for the Economics