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Matias spent 8 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 4 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?

Respuesta :

Answer:

The correct answer is: four (4) hours watching TV.

Explanation:

Marginal Cost refers to the increase in the total cost as the result of producing one more unit of the good. Companies study marginal costs to determine what is the point at which they should take production to maximize their profits in terms of costs.

In Matias' case, moving from a "B" score to an "A" grade would cost him four (4) more hours that he could have spent watching TV. Then, those 4 hours represent his marginal cost.

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