Will,Bill,and Phil decide to study an extra hour for an exam.Instead of studying,they could have gone out to eat,played football,or watched TV.Which of the following statements is correct?
A) The benefit the three students receive must be the same because they all make the same choice.
B) The students made a rational choice as long as they face no scarcity.
C) The students could each have different opportunity costs.
D) The marginal cost of the decision is the same if they make the same score on the exam.
E) Going out to eat, playing football, and watching TV are all called sunk costs.

Question

Quizplus · Accepted Answer

Each student may have different opportunity costs depending on their individual preferences and the value they place on each activity. One student may value studying more highly than going out to eat or watching TV, while another student may value playing football more highly than studying. Therefore, the best choice would depend on each student's individual opportunity cost.

Will,Bill,and Phil Decide to Study an Extra Hour for an Exam.Instead