Every week, Bob skates for four hours, and his grade on each psych test is 85 pe

Question

Every week, Bob skates for four hours, and his grade on each psych test is 85 percent. Last week, after skating for four hours, Bob considered skating for another hour. He decided to skate for another hour and cut his study time by one hour. But last week, his psych grade fell to 75 percent. Did Bob make his decision on the margin? A. Bob's decision was not nude at the margin because the marginal cost of a lower grade always exceeds its marginal benefit. B. Bob's decision was not made at the margin because he didn't compare the total benefit and total cost of a fourth hour of skating. C. Bob's decision was made at the margin because his grade fell by only 10 percentage points. D. Bob made his decision at the margin because he considered the benefit and cost of one additional hour of skating. E. Bob's decision was not made at the margin because he could have chosen not to go skating but didn't.

Explanation / Answer

Option B. As Bob did not do cost benefit analysis. His grades suddenly fell to 75%.

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