Kathleen Alvarado is binge-watching her favorite show on Netflix. She is trying to decide how many more episodes to watch. Kathleen should continue watching episodes unless the marginal
A)benefit of watching another episode exceeds the marginal cost.
B)benefit of watching another episode is equal to the marginal cost.
C)benefit of watching another episode is positive.
D)cost of watching another episode is positive.

Question

Quizplus · Accepted Answer

Kathleen should continue watching episodes until the marginal benefit of watching another episode is equal to the marginal cost. This is the point where the satisfaction gained from watching one more episode is exactly balanced by the cost (time, opportunity cost, etc.) of doing so, optimizing her utility.

Kathleen Alvarado Is Binge-Watching Her Favorite Show on Netflix