Question

Although you have an exam tomorrow, you are considering watching one more episode of your favorite TV show. You will choose to stay on the couch if Choose one:

A. the marginal benefit of watching one more episode of your favorite TV show outweighs the marginal cost.
B. the marginal benefit of watching one more episode of your favorite TV show exactly equals the marginal cost.
C. watching one more episode of your favorite TV show is free, so the marginal cost is zero.
D. watching one more episode of your favorite TV show is guaranteed to be fun, so the marginal benefit is high.

Answer 1

A rational consumer will choose to engage in an activity, such as watching an additional episode of a TV show, only if the marginal benefit outweighs the marginal cost. This decision is based on the economic principle that additional consumption is justified as long as the satisfaction (marginal utility) gained is greater than what is given up (marginal cost). The correct answer is A, where the marginal benefit of watching the episode outweighs its marginal cost.

Step-by-step explanation:

The question revolves around the concept of marginal utility and marginal cost, which are central to decision-making in microeconomics. When faced with a choice, such as whether to watch another episode of a TV show or study for an exam, one should weigh the marginal benefit of that action against its marginal cost. The correct answer that reflects rational consumer behavior is A: A rational consumer will choose to stay on the couch and watch one more episode if the marginal benefit of watching the episode outweighs the marginal cost associated with that choice. It is this comparison of additional benefits and costs that will inform the student's decision. For example, the marginal benefit may include relaxation and enjoyment, whereas the marginal cost could involve less time to study and potentially lower exam scores.

According to economic principles, when marginal utility, which can be seen as the satisfaction obtained from consuming one more unit of a good or service, exceeds the marginal cost, additional consumption is justified. Eventually, if the consumer continues to consume more units, the marginal utility will decline to a point where it equals the marginal cost. At this juncture, the rational decision would be to stop consuming further, as the benefit no longer exceeds the cost.

Answer 2

The correct answer is A

Step-by-step explanation:

Facing a decision for yes or not (buy or not to buy, sleep or not to sleep, eat or not to eat, and so on) you will choose to do something if this something gives you a positive marginal benefit.

In this case your situation has two sides. By one side, watching an extra episode is good and gives you utility, buy you also need to study and not tu study gives you disutilty (or it's a cost). So, you will watch your episode if it gives you more marginal benefit than the cost it gives you.

If you are in a situation where the marginal cost and benefit are already equal you won't watch another episode, as the marginal benefit will be negative.

Watching an extra episode is not free, it has an opportunity cost (study for the exam)

And about D, watching an extra episode will not always guarantee fun, think about watching 18 episodes in a row, not going to school and getting fired from job.

So, correct answer: A