Bob and Mary each have a Ph.D.in economics.Bob has a job in private industry at which he earns $90,000 a year.Mary earns half that much as a college professor.Which of the following could not explain Mary's career choice?

Question

Quizplus · Accepted Answer

Diminishing marginal utility implies that as a person earns more income, the additional satisfaction or utility from each additional dollar earned decreases. Since Mary earns less than Bob, it is unlikely that she would experience diminishing marginal utility as a reason for her career choice. All the other options - flexibility of schedule, enjoyment of teaching, preference for the informal atmosphere of a college, and liking having summers free for research - could be legitimate reasons for Mary's career choice.

Bob and Mary Each Have a Ph