The Optimal Amount of Studying for the Next Exam Is

question 5

Multiple Choice

The optimal amount of studying for the next exam is determined by comparing

• A)total benefit and the total cost of studying.
• B)marginal benefit and the total cost of studying.
• C)marginal benefit and the marginal cost of studying.

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Definitions:

Benefit

The advantage or profit gained from something.

Absolute Advantage

The ability of a country, individual, or firm to produce a good more efficiently than another entity using the same amount of resources.

Comparative Advantage

An economic theory that suggests that countries or entities gain and benefit from trading if they specialize in producing goods for which they have a lower opportunity cost.

Trade

The act of buying, selling, or exchanging goods and services between people or entities, within or across borders.