Suppose that you are spending two hours a day studying economics, and your grade is 85 percent. You want a higher grade and decide to study for an extra hour a day. As a result, your grade rises to 90 percent. Your marginal benefit is the
A) 5 point increase in your grade minus the opportunity cost to you of spending the hour studying.
B) extra hour per day you spend on studying.
C) 5 point increase in your grade.
D) three hours per day you spend on studying.

Question

Quizplus · Accepted Answer

The marginal benefit in this context refers to the additional gain or benefit received from the extra action taken, which is the 5 point increase in your grade as a result of studying an additional hour per day.

Suppose That You Are Spending Two Hours a Day Studying