The decision to go to graduate school is a rational one for a college student if the
A) cost is not too great.
B) marginal cost exceeds the marginal benefit of graduate school.
C) marginal benefit of graduate school exceeds the marginal cost.
D) opportunity cost of graduate school equals zero.
E) student carefully compared the benefits of this decision to the sunk costs of the decision.

Question

Quizplus · Accepted Answer

The rational decision to go to graduate school depends on whether the marginal benefit of attending graduate school is greater than the marginal cost. This means that the student should consider the additional cost of graduate school compared to the potential benefits such as higher salary, better job prospects, and more advanced knowledge and skills. If the marginal benefit is greater than the marginal cost, then it would be rational for the student to attend graduate school.

The Decision to Go to Graduate School Is a Rational