Suppose that for the past two months, you have studied economics one hour a day. You now decide to study economics two hours a day. For the past two months,____________ .

Question

Quizplus · Accepted Answer

The decision to study economics for two hours instead of one hour implies that the marginal benefit of studying economics for an hour is greater than its marginal cost. Otherwise, the individual would not have chosen to study for two hours. Therefore, the correct answer is C. The other choices may or may not be true but do not follow directly from the information given.

Suppose That for the Past Two Months, You Have Studied