After 3 Years at an Expensive University,Pierre Realizes That He

question 82

Multiple Choice

After 3 years at an expensive university,Pierre realizes that he doesn't want to finish school but really wants to be a chef.When Pierre suggests that he leave university for culinary school,his parents insist that he stay for one more year to get his degree.Which statement is TRUE?

• A) Pierre's parents are correct: if he leaves university,it is as though he has wasted 3 years of tuition.
• B) Pierre's parents are wrong: the marginal benefit to Pierre of another year of university is less than the marginal cost of university.
• C) Pierre's parents are wrong: the marginal benefit to Pierre of another year of university is greater than the marginal cost of university.
• D) It is impossible to tell who is correct.