If the Marginal Benefit of Getting a College Degree Rises

question 160

Multiple Choice

If the marginal benefit of getting a college degree rises, rational people will

• A)drop out of college.
• B)attend college in greater numbers.
• C)not change their behavior.
• D)raise the marginal cost of attending college.
• E)require that college get easier.

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Definitions:

Short Run

The length of time it takes all fixed costs to become variable costs.

Long Run

The long run is a period in economics wherein all inputs can be adjusted, and there are no fixed costs, allowing full operational flexibility.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider.

Good Or Service

Any tangible product (good) or intangible offering (service) that can be sold or provided in a market to satisfy the demand of a customer.