Suppose you are working four nights per week at your courses and your grade point average is 3.5. You want a higher grade and decide to study an extra night each week. Your GPA now rises to 3.8
What is your marginal benefit from studying for one additional night a week?
Marginal benefit is the benefit that arises from an increase in an activity. Your marginal benefit is the 0.3 increase in your grade. It's not the 3.8 grade because you already have the benefit from studying for four nights a week and should not count this benefit as resulting from the decision you are now making.
You might also like to view...
The Fed first announced an inflation target of 2% in
A) 1979. B) 2005. C) 2012. D) 2015.
In Figure 4-6 above, suppose we are initially at point 2. A reduction in government spending causes income to change by ________ and the interest rate to change by ________ than would be the case in the Chapter 3 model
A) more, more B) more, less C) less, more D) less, less
Briefly explain the difference between price effect and output effect, and discuss how they are related to the marginal revenue and demand curves for a monopolist.
What will be an ideal response?
A set of actions that a firm takes to achieve a goal is the definition of a
A) business plan. B) business strategy. C) business prospectus. D) business goal.