Studying has both costs and benefits. If you continue tostudy (e.g., for a test) for as long as the marginal benefitsof studying are greater than the marginal costs, and youstop studying when the two are equal, will your actionbe consistent with having maximized the net benefits ofstudying? Explain your answer.

Studying has both costs and benefits. If you continue tostudy (e.g., for a test) for as long as the marginal benefitsof studying are greater than the marginal costs, and youstop studying when the two are equal, will your actionbe consistent with having maximized the net benefits ofstudying? Explain your answer.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 19P

See similar textbooks

Similar questions

It’s Friday night. You already have a ticket to aconcert, which cost you $30. A friend invites youto go out for a game of paintball instead. Admission would cost you $25, and you think you’d get$25 worth of enjoyment out of it. Your concertticket is nonrefundable. What is your opportunitycost (in dollars) of playing paintball?
Suppose the administration of a University that is located a high-crime urban area mustdecide on a policy to increase policing on its campus. The student population is 10,500 students but iscould increase if crime is reduced. The cost of added policing in terms of additional salary and equipmentis estimated to be $2.4 million per year. Suppose the administration plans to make their decision with thehelp of a benefit cost analysis of the policy. VSL is $11.8 million a. Explain how the concept of Value of a Statistical Life might factor into a benefit cost analysis of thispolicy. b. How many lives would need to be save to justify the added policing costs if only prevented deathswere considered as the policy benefit? c. Suppose it is believed that student enrollment will increase in the future if crime on campus is reduced.Write a formula to calculate the present value of benefits of policing if student enrollment increases by4% each year.
Describe three ways in which human decision making differ from the rational individual conventional economic thoery
Ivar participates in a lot of Viking raids and needs to buy swords every month. He is offered a sword subscription. For a monthly fee he can buy as many swords as he wants at a per-sword price of $127. Swords can only be purchased in integer amounts. His Marginal Benefits (MB) from swords in a month is given in the table below. What is the maximum Ivar is willing to pay for this sword subscription. Quantity Marginal Benefit 1 $189 $146 $80 $76 $66 45
How does the scarcity of resources affect the firm’s decision making? Justify your answer through discussing specific situations.
Suppose that a study of changes in admission prices reveals that when the price of admissionto the museum increases by 10%, adults reduce their ticket purchases by 10%, senior citizensreduce their ticket purchases by 20%, college students reduce their ticket purchases by 25%,and children reduce their ticket purchases by 30%. If the cost of having a person visit themuseum is the same regardless of whether the person is an adult, senior citizen, collegestudent, or child, which of the following pricing schemes is the most likely to be used by themuseum and why? Group of answer choices The museum will set one price of $12 for everyone because that is the most fair. $8 for children, $10 for college students, $12 for senior citizens, and $15 for adultsbecause the museum can earn higher profits by charging the lowest price to those with theleast elastic demand and the highest price to those with the most elastic demand. $15 for children, $12 for college students, $10 for senior citizens,…
1. Working with Numbers and Graphs Q1 Suppose the marginal costs of reading are constant at $5 per hour, while the marginal benefits of reading decline (over time) as more reading is performed. In particular, suppose the following table contains the marginal benefit associated with various levels of hours spent reading. Time Spent Reading Marginal Benefits (Hours) (Dollars per hour) 8 3 12 Assume the marginal-benefit curve is a straight line through the two points described in the table. MARGINAL COST, MARGINAL BENEFIT ($ per hour of reading per week) On the following graph, use the blue points (circle symbol) to plot the marginal-benefit curve for reading. Next, use the orange points (square symbol) to plot the marginal-cost curve for reading. Finally, use the black point (plus symbol) to indicate the point corresponding to the efficient amount of reading (that is, the point at which the net benefits of reading are maximized). 00 32 N 0 2 3 + 6 9 12 15 18 21 READING (Hours per week)…
Hacmillan Leaming Christine and Paul are deciding how to split their time between writing music and lyrics for their new album. Their PPF's for 72 h of work are shown. Christine and Paul have to write music for 8 songs and lyrics for 12 songs (4 songs already have music). When they are done, they can go to a private island and relax from all their hard work. It is possible that they will use more than 72 h. Once they start writing lyrics and music, assuming their hired help packs for them and their plane is waiting outside their door, in how many hours can they board the plane to their relaxing island getaway? Christine will write music for Paul will write music for Christine will write lyrics for Paul will write lyrics for h songs. songs. songs. songs. Music written (in # of songs) 1 0 Paul's PPF 1 Christine's PPF 2 Lyrics written (in # of songs))
Imagine that you are trying to decide whether to cross a street without using the designated crosswalk at the traffic signal. What are the expected marginal benefits of crossing? The expected marginal costs? How would the following conditions change your benefit–cost equation?
13. A layperson says that a proposed government project simplycosts too much and therefore shouldn’t be undertaken.How might an economist’s evaluation be different?14. Economists say that individuals make decisions at themargin. What does this mean?15. How would an economist define the efficient amount oftime spent playing tennis?16. Ivan stops studying before the point at which his marginalbenefits of studying equal his marginal costs. Is Ivan
Scenario: Alex, an entrepreneur, operates a called business "Fitness for Life", providing physical conditioning services (strength, balance, and flexibility training) in his community. Which of the following are the THREE factors that are most likely to have positive impacts on his business? Select ONLY THREE from the given factors. O People in his community have become more health-conscious. O The average education level of the population in his community is low. The average age of the population in his community is high. The local school district has been running a publicity campaign emphasizing the value of exercise. The level of disposable income in his community is low. O The level of unemployment in his community is high. O The mayor of the city where Alex operates is an amateur marathon runner and has stressed the need for "going green" in the community. DA chiropractor and two independent physical therapists are located in his community. O O O O
how does scarcity affect enconomic decisions?