A college student decides to spend his afternoon watching three movies rented from Redbox. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the first movie?

Question

Quizplus · Accepted Answer

The marginal benefit received by the student when renting the first movie is the amount he was willing to pay ($4) minus the actual cost ($1), which equals $3. However, since the options provided do not include $3, and considering the context of the question might be aiming to assess the value the student places on the first movie alone without subtracting the cost, the closest correct interpretation based on the given choices would be that he was willing to pay $4 for the first movie, indicating the perceived value or benefit of that movie to him.

A College Student Decides to Spend His Afternoon Watching Three