For which decision would marginal analysis be MOST relevant?
A) Should I invest all of my savings in real estate or should I keep it all in a savings account?
B) After I graduate from university,should I go to graduate school or should I get a job?
C) How many hours should I study for my exam?
D) Should I keep a pet?

Question

Quizplus · Accepted Answer

Marginal analysis is most relevant when deciding the optimal level of a certain activity. In this case, the decision of how many hours to study for an exam involves assessing the trade-off between studying for more hours and other activities, such as leisure or sleep. Marginal analysis involves weighing the benefits and costs of studying an additional hour, based on factors such as the potential increase in grade and the opportunity cost of not spending that hour on another activity.

For Which Decision Would Marginal Analysis Be MOST Relevant