Marginal Opportunity Cost

Raquel has to decide between a $100 and a $300 dress for the prom. What is her marginal opportunity cost AND marginal benefit if she buys the more expensive dress? (a)  

• $100, looking fly
• $200, looking fly
• $300, looking fly
• $400, looking fly

(a)   involves comparing the benefits and costs of producing and consuming additional units of something.

• Looking at the cost of an alternati
• Looking at the benefits of an alter
• Evaluating the cost of an alternati
• Marginal analysis

Which of the following is an example of marginal analysis?

• Buying that XBox you have been wanting for a long time

• Comparing the benefits and costs of exercising for 30 minutes vs. 1 hour.

• Going to a movie

• Eating a huge ice cream sundae

When deciding how much of something to do or buy, people compare the marginal benefit from different levels of the activity to the (a)   .

• average opportunity cost
• marginal opportunity cost
• sunk opportunity cost
• total opportunity cost

Let's say a 2018 Subaru Forester base model costs $20,000. Mr. Marsden decides to buy the $23,000 Premium model because it has heated and motorized seats. The marginal benefit of his decision is_______.

• $3,000

• heated and motorized seats

• his wife is angry at him for wasting money

Let's say a 2018 Subaru Forester base model costs $20,000. Mr. Marsden decides to buy the $23,000 Premium model because it has heated and motorized seats. Mr. Marsden's marginal opportunity cost in buying the $23,000 Subaru is

• $20,000

• $23,000

• $3,000

• heated seats and back up camera

Which of the following is a good consumer rule for expensive items?

• Buy the product that your consumer research says is the best.

• Buy the most expensive since price reflects quality.

• Buy what you want.

• Buy the product after comparing the benefits and cost of alternatives.

When deciding whether to do something, you should always choose the alternative

• where the marginal opportunity cost is greater than the marginal benefit

• where the marginal benefit is greater than the marginal opportunity cost

• that just feels right to you at the moment. Just do it!

For MOST people, what is the marginal opportunity cost of attending college full-time?

• failure to develop your human capital

• having to live at home with your parents

• forgone earnings

In which of these situations would a manufacturer decide to produce more units of a good?

• The marginal cost is greater than the marginal benefit.

• The marginal cost is less than the marginal benefit.

• The marginal benefit is less than the marginal cost.

• The marginal benefit is equal to the marginal cost.