Give an example to illustrate how a change in opportunity cost can affect behavior. Studying has both costs and benefits. If you continue to study (e.g., for a test) for as long as the marginal...

Give an example to illustrate how a change in opportunity cost can affect behavior. Studying has both costs and benefits. If you continue to study (e.g., for a test) for as long as the marginal benefits of studying are greater than the marginal costs, and you stop studying when the two are equal, will your action be consistent with having maximized the net benefits of studying? Explain your answer. You stay up an additional hour to study for a test.

May 18, 2022
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