Use the following to answer question(s): Marginal Benefits and Marginal Costs

-(Exhibit: Marginal Benefits and Marginal Costs) In the exhibit, more time spent studying economics adds points to economics scores but subtracts points from accounting scores.At 4 hours of study the student will "maximize" because:
A) MB = MC.
B) MB = 20 and MC = 20.
C) the difference between total benefits and total costs is maximized.
D) of all of the above.

Question

Use the following to answer question(s): Marginal Benefits and Marginal Costs
 
-(Exhibit: Marginal Benefits and Marginal Costs) In the exhibit, more time spent studying economics adds points to economics scores but subtracts points from accounting scores.At 4 hours of study the student will "maximize" because:
A) MB = MC. 
B) MB = 20 and MC = 20. 
C) the difference between total benefits and total costs is maximized. 
D) of all of the above.

Quizplus · Accepted Answer

At 4 hours of study, the student will maximize because this is the point where marginal benefits (MB) equal marginal costs (MC), which is also where the difference between total benefits and total costs is maximized. This encompasses all the conditions listed, making all of the options correct.

Use the Following to Answer Question(s): Marginal Benefits and Marginal