It is the night before your economics final exam and you must decide how many hours to
Question:
It is the night before your economics final exam and you must decide how many hours to study. The total benefits column shows how many more points you expect to earn because of increased knowledge. The cost column shows how many points you will lose because of careless errors due to lack of sleep. (The “marginal” columns show the effect of each additional hour spent studying. These marginal numbers are calculated by taking the difference within a column from one row to the next row.)
Hours Spent Studying | Total Benefit | Marginal Benefit | Total Cost | Marginal Cost |
0 | 0 | -- | 0 | -- |
1 | 10 | 10 | 0 | 0 |
2 | 16 | 6 | 3 | 3 |
3 | 20 | 4 | 8 | 5 |
4 | 20 | 0 | 15 | 7 |
If you study in an optimal way, how many more points will you earn on the test?
Explain how you can find the optimal number of hours by using the marginal benefits and marginal costs columns.
Expert Answer:
a If the person studies in an optimal way then the person will earn 13 more points in the test Optim... View the full answer
