Loose-leaf Microeconomics With Connect Access Card
2nd Edition
ISBN: 9780077716325
Author: B. Douglas Bernheim Lewis & Virginia Eaton Professor
Publisher: McGraw-Hill Education
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Chapter 3, Problem 8CP
To determine
Best choice.
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THIS IS A MATHEMATICAL ECONOMICS SUBJECT
Marginal analysis is one of the most useful concepts in economic decision making. Discuss and show examples including graphs to support your answer.
Suppose that you can purchase satellite TV service for a fixed monthly fee of $79, no matter how many hours of TV you watch. Assuming that the principle of diminishing marginal benefit applies to watching TV, the optimal (efficient) number of hours of TV to watch per month is:
Group of answer choices
Zero
The number of hours where marginal benefits are zero.
The number of hours where marginal cost is lowest.
The number of hours where marginal benefits are maximized.
Chapter 3 Solutions
Loose-leaf Microeconomics With Connect Access Card
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