📚 Learning Guide
Marginal Utility Per Dollar
easy

If a student decides to buy a textbook for $50 instead of going to a concert that costs $40, what is the opportunity cost of purchasing the textbook?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose AnswerChoose the Best Answer

A

The enjoyment from attending the concert

B

The money spent on the textbook

C

The time spent studying

D

The knowledge gained from the textbook

Understanding the Answer

Let's break down why this is correct

The student gives up the chance to enjoy the concert. Other options are incorrect because People sometimes think the money spent on the textbook is the opportunity cost; A misconception is that the time spent studying is the opportunity cost.

Key Concepts

Opportunity Cost
Topic

Marginal Utility Per Dollar

Difficulty

easy level question

Cognitive Level

understand

Deep Dive: Marginal Utility Per Dollar

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Definition
Definition

Marginal Utility Per Dollar is a concept in Economics that helps consumers maximize utility by considering the additional satisfaction gained from spending one more dollar on each good. In this scenario, the consumer chooses the combination of apples and oranges that provides the highest marginal utility per dollar spent within the budget constraint of $7, demonstrating rational consumer decision-making.

Topic Definition

Marginal Utility Per Dollar is a concept in Economics that helps consumers maximize utility by considering the additional satisfaction gained from spending one more dollar on each good. In this scenario, the consumer chooses the combination of apples and oranges that provides the highest marginal utility per dollar spent within the budget constraint of $7, demonstrating rational consumer decision-making.

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