The optimal amount of studying for the next exam is determined by comparing
A)total benefit and the total cost of studying.
B)marginal benefit and the total cost of studying.
C)marginal benefit and the marginal cost of studying.

Question

Quizplus · Accepted Answer

The optimal amount of studying can be determined by comparing the marginal benefit (the increase in exam score from studying one additional hour) with the marginal cost of studying (the opportunity cost of using that hour for something else). When the marginal benefit equals the marginal cost, studying should stop. This is because any additional hour of studying will provide less benefit than the cost incurred, resulting in a lower net benefit overall.

The Optimal Amount of Studying for the Next Exam Is