1. Joe Higgins is thinking about how much time to spend studying for a biology exam...

  

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1. Joe Higgins is thinking about how much time to spend studying for a biology exam tomorrow. Using "utility units" he measures the benefits and costs of study; his calculations are shown in the following table. Hours spent studying 1 5. 6. Total beneht 100 180 240 280 300 300 Total cost 50 100 150 200 250 300 Net benefit | | a. Fill in the fourth row for net benefit in the table. Use the midpoint convention to emphasize that the net benefit is a marginal value showing the gain as hours spent increase by one-hour increments. (In English, the "net benefit" is the increase in benefit minus the increase in cost.) b. Based on the marginal decision rule, how many hours should Joe spend studying for his biology exam? W. 1. Joe Higgins is thinking about how much time to spend studying for a biology exam tomorrow. Using "utility units" he measures the benefits and costs of study; his calculations are shown in the following table. Hours spent studying 1 5. 6. Total beneht 100 180 240 280 300 300 Total cost 50 100 150 200 250 300 Net benefit | | a. Fill in the fourth row for net benefit in the table. Use the midpoint convention to emphasize that the net benefit is a marginal value showing the gain as hours spent increase by one-hour increments. (In English, the "net benefit" is the increase in benefit minus the increase in cost.) b. Based on the marginal decision rule, how many hours should Joe spend studying for his biology exam? W.

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a Hours spent studying 1 2 3 4 Total benefit 100 180 240 280 300 300 Tot... View the full answer