If a student enrolls in an additional course at the university, an economist would conclude that:
a. the total benefit that the student expects to receive as a result of completing her college degree exceeds the total cost of her college education.
b. the student is not following the rule of rational choice
c. the student must not be involved in extracurricular campus activities.
d. the expected marginal benefit of an additional course must exceed the expected marginal cost of the course.
d
You might also like to view...
In a perfectly competitive market, if P > MC, then
A) too little output is being produced. B) too much output is being produced. C) production is efficient, as the firm is earning profits. D) the firm is paying a price for resources that is too high.
Suppose Kenya is open to free trade in the world market for wheat. Because of Kenya’s small size, the demand for and supply of wheat in Kenya do not affect the world price. The following graph shows the domestic wheat market in Kenya. The world price of wheat is PW = $250 per ton.
On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS).
