1.For which of the following decisions would marginal analysis be relevant? A) s
ID: 1186986 • Letter: 1
Question
1.For which of the following decisions would marginal analysis be relevant?
A) spending $1,000 on a summer vacation or on painting your house
B) the same amount
C) More
D) None
2. For which of the following decisions would marginal analysis be relevant?
A)Spending $1000 on a summer vacation or on painting your house
B)Deciding how much to spend on a summer vacation
C)Buying a new car or a second-hand car
D) Eating dinner at home or going out to a restaurant for dinner
3.
Figure: Marginal Benefits and Marginal Costs) As shown, more time spent studying economics adds points to economics scores but subtracts points from accounting scores. The marginal benefit of studying economics when the student is at 2 hours is ________ points and the marginal cost is ________ points.
A)40; 0
B)30; 10
C)20; 20
D)10; 30
(Figure: Short-Run Costs) A is the ________ cost curve.
A)average total
B)average variable
C)marginal
D)total
1.For which of the following decisions would marginal analysis be relevant?
A) spending $1,000 on a summer vacation or on painting your house
B) the same amount
C) More
D) None
2. For which of the following decisions would marginal analysis be relevant?
A)Spending $1000 on a summer vacation or on painting your house
B)Deciding how much to spend on a summer vacation
C)Buying a new car or a second-hand car
D) Eating dinner at home or going out to a restaurant for dinner
3.
Figure: Marginal Benefits and Marginal Costs) As shown, more time spent studying economics adds points to economics scores but subtracts points from accounting scores. The marginal benefit of studying economics when the student is at 2 hours is ________ points and the marginal cost is ________ points.
A)40; 0
B)30; 10
C)20; 20
D)10; 30
(Figure: Short-Run Costs) A is the ________ cost curve.
A)average total
B)average variable
C)marginal
D)total
Explanation / Answer
Marginal analysis will be most relevant for deciding how much to spend on your summer vacation....Marginal analysis gives you the consequesnces of using one extra unit be it a unit of currency or a unit of production.......So Marginal analysis will tell you which is the safe amount to be spent on the vacation as beyond that the cost will be more than the benefit,...
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For your question 3...draw a vertical line at the point 2 of the X axis....It will intersect the MB curve at y=30 and the MC curve at y=10.....Hence the answer is option B) 30 ; 10
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The answer is option c) Marginal..............
An easy explaination for the same..................look at the Marginal cost of question 3and now compare it with the curves of question 4 you will find that curve A most resembles it.
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