Question

Matias spent 12 hours studying for an exam, and he received an A on the exam. Normally, he would have spent that time watching TV instead of studying. Matias figures he could have made a B after studying only 6 hours, but he really wanted an A. What is Matias ’s marginal cost in terms of TV viewing to move from a B to an A on the exam?

Answer 1

Answer:

The marginal cost is not being able to watch TV for 6 hours.

Explanation:

The marginal cost is the change in cost when you produce an additional unit of a good. In this case, is what you give up to get a better grade, which is 6 hours of watching TV.