Question

You can spend the evening studying or you can go to see a movie. You will choose to spend the evening studying if​ ______. A. no tradeoff occurs by spending the evening studying B. the marginal benefit of spending the evening studying is greater than the marginal cost of spending the evening studying C. the marginal benefit of going to see a movie is less than the marginal benefit of spending the evening studying D. the marginal benefit of spending the evening studying is greater than the marginal cost of going to see a movie

Answer 1

Answer:

B). The marginal benefit of spending the evening studying is greater than the marginal cost of spending the evening studying.

Explanation:

Marginal benefit is demonstrated as the additional change that is caused due to an increase in consumption of a specific product or service while the marginal cost is described as the additional/incremental cost that is incurred for the production of an additional good/service.

In the given example, one would opt to spend an evening studying only if 'the marginal benefit(the incremental benefit experienced) of spending the evening studying is greater in comparison to the marginal cost(additional cost incurred) of spending the evening studying.' If the additional cost spent on achieving a particular benefit is more than the benefit received, the consumer would not opt to incur that additional cost(marginal cost) on producing the extra good and chose to go movie. Therefore, option B is the correct answer.