(Figure: Marginal Benefits and Marginal Costs) Use Figure: Marginal Benefits and Marginal Costs.More time spent studying economics adds points to economics scores (MB) but subtracts points from accounting scores (MC) .At 4 hours of study,Claudia will maximize her benefit from study time because:

A) MB > MC.
B) MB = 20 and MC = 5.
C) the difference between total benefits and total costs is maximized.
D) sunk costs are minimized.

Question

Maciel Acosta · Accepted Answer

Final Answer : C, Explanation :  At 4 hours of study, the difference between total benefits (points added to economics scores) and total costs (points subtracted from accounting scores) is maximized, which means Claudia will get the maximum net benefit from her study time. This is the principle of maximizing the net benefit, where the goal is to maximize the difference between total benefits and total costs.

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