Exhibit 1-1

-Refer to Exhibit 1-1. The student whose study habits are illustrated in this diagram will maximize the net benefits of studying when she has studied __________ hours.

Question

Exhibit 1-1

-Refer to Exhibit 1-1.  The student whose study habits are illustrated in this diagram will maximize the net benefits of studying when she has studied __________ hours.

Quizplus · Accepted Answer

According to the diagram, the marginal benefits of studying increase while the marginal costs of studying decrease until they meet at 6 hours of studying, where the net benefits are maximized. Beyond 6 hours, the marginal costs start to outweigh the marginal benefits, resulting in a decrease in net benefits. Therefore, studying for 6 hours will result in the maximum net benefits.

Exhibit 1-1 -Refer to Exhibit 1-1. the Student Whose Study Habits Are Illustrated