From an economic perspective, when a student decides to go to the movies instead of studying for a test, it indicates that in the student's thinking the marginal:
A) Benefit of studying is greater than the marginal cost of studying
B) Cost of going to the movies is less than the marginal benefit of going to the movies
C) Benefit of studying are greater than the marginal benefit of going to the movies
D) Cost of going to the movies is greater than the marginal cost of studying

Question

Quizplus · Accepted Answer

Marginal cost and marginal benefit analysis is based on comparing the additional cost and additional benefit of one choice to another. In this scenario, the student decided to go to the movies instead of studying, indicating that the marginal benefit of going to the movies was higher than the marginal benefit of studying. Additionally, the cost of going to the movies was lower than the marginal cost of studying. Therefore, the correct option is B.

From an Economic Perspective, When a Student Decides to Go