Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie. Leann is making
A) a rational decision if her marginal cost from the movie is greater than her marginal benefit.
B) an irrational decision because studying is more important than watching a movie.
C) a decision that is not on the margin because she will see the entire movie.
D) a decision that does not involve an opportunity cost.
E) a rational decision if her marginal benefit from the movie is greater than her marginal cost.
E
You might also like to view...
If an asset has a future value of $120, a present value of $30, and an interest rate of 4%, how many periods of compounding are there?
A) 45 periods B) 35 periods C) 28 periods D) 100 periods
If the cost of capital decreased to 1%, does the firm invest in the new technology?
a. Yes because the NPV>0 b. Yes because the NPV=0 c. Need information on the marginal benefits and costs d. No because the NPV<0