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According to marginal analysis, you should spend more time studying economics if the extra benefit from an additional hour of study

a. is positive
b. outweighs the extra cost
c. exceeds the benefits of the previous hour of study
d. will raise your exam score

1 Answer

1 vote

Answer:

(b). outweighs the extra cost

Step-by-step explanation:

As per the principles of marginal analysis, the extra benefit of performing a task must outdo the extra cost associated with the same.

Marginal refers to something extra which is earned or incurred when an additional unit of output is produced/sold.

So as per marginal principle, an activity should only be taken up if extra benefit derived from it exceeds the extra cost that would be incurred.

Hence, the correct option is (b). outweighs the extra cost.

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