ECON Chapter 1
Kimberley is studying for her math exam. If she studies for 5 hours she knows she'll get an 80, and if she studies for 6 hours, she knows she'll get a 90. Thus, the marginal benefit of the 6th hour of studying is
10 points
An activity's __________ benefit is the total benefit of carrying out n units of an activity divided by n.
Average
The benefit of taking an action minus its cost is known as
Economic surplus
When making a decision, sunk costs
Should be ignored
The value of what must be foregone in order to undertake an activity is known as
opportunity cost
The marginal cost of carrying out an activity is the
the increase in total cost that results from carrying out one additional unit of activity
The average cost of carrying out an activity is
the total cost of undertaking n units of an activity divided by n
A sunk cost is
the value of what must be foregone to undertake an activity.
