-Refer to Exhibit 1-1.If the student whose study habits are illustrated here is currently studying for the 2nd hour she should
A) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so.
B) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is greater than the marginal cost of doing so.
C) increase the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so.
D) increase the number of hours she is studying because the marginal benefit of studying for the 3rd ,4th,and 5th hours is greater than the marginal cost for each of these hours.

Question

-Refer to Exhibit 1-1.If the student whose study habits are illustrated here is currently studying for the 2nd hour she should
A) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. 
B) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is greater than the marginal cost of doing so. 
C) increase the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. 
D) increase the number of hours she is studying because the marginal benefit of studying for the 3rd ,4th,and 5th hours is greater than the marginal cost for each of these hours.

Quizplus · Accepted Answer

The correct choice is based on the principle that one should continue an activity as long as its marginal benefit exceeds its marginal cost. Without seeing Exhibit 1-1, the rationale for choice D is that if the marginal benefits of studying for the 3rd, 4th, and 5th hours exceed the marginal costs, it indicates that there is still a net gain to be achieved from additional study hours, suggesting an increase in study time is warranted.