Steve is planning to divide his study time between English and calculus.It will take him two hours of study for each extra point in calculus and one hour of study to raise his English score by one point.He should allocate his time so that
A)the marginal utility of an hour spent studying calculus is twice the marginal utility of an hour spent studying English
B)the marginal utility of an hour spent studying English is twice the marginal utility of an hour spent studying calculus
C)the marginal utility per hour spent studying calculus equals the marginal utility per hour spent on English
D)he spends twice as much time on calculus as on English
E)he spends twice as much time on English as on calculus

Question

Quizplus · Accepted Answer

In order to make a choice that maximizes his overall utility, Steve should allocate his time such that the marginal utility per hour spent on both subjects is equal. This means that the extra benefit he gets from an additional hour of study time in calculus should be the same as the extra benefit he gets from an additional hour of study time in English. Therefore, choice C is the best option.

Steve Is Planning to Divide His Study Time Between English