📚 Learning Guide
Understanding Marginal Analysis
hard

In a scenario where a student evaluates the marginal benefits of additional study sessions against the costs, which decision reflects a misunderstanding of marginal analysis?

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Choose the Best Answer

A

Continuing to study when additional sessions provide greater benefits than costs.

B

Stopping study sessions despite marginal benefits still exceeding costs.

C

Allocating resources to study sessions based on their marginal utility.

D

Analyzing the opportunity cost of time spent studying versus other activities.

Understanding the Answer

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Answer

When a student evaluates the marginal benefits of studying more against the costs, a misunderstanding of marginal analysis occurs if they only consider the total benefits of all study sessions instead of just the extra benefits from one more session. Marginal analysis focuses on the additional benefits gained from a small change, not the overall benefits. For example, if a student has already studied for five hours and thinks about studying for one more hour, they should ask, “Will this extra hour help me understand the material better? ” If they only think about how much they studied in total and ignore whether that last hour will actually improve their grades, they are misapplying marginal analysis. Therefore, it is important to weigh the specific benefit of that additional hour against what it costs in terms of time or energy.

Detailed Explanation

Stopping study sessions when the benefits are still greater than the costs shows a misunderstanding. Other options are incorrect because This choice shows good understanding; This option is correct thinking.

Key Concepts

Marginal Analysis
Opportunity Cost
Utility Maximization
Topic

Understanding Marginal Analysis

Difficulty

hard level question

Cognitive Level

understand

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