Although you are really tired after a long run, you are considering meeting a friend at the local track to run a few more miles. You will choose to keep running if Choose one: A the marginal benefit of meeting a friend at the local track to run a few more miles outweighs the marginal cost. B. the marginal benefit of meeting a friend at the local track to run a few more miles exactly equals the marginal cost. C. meeting a friend at the local track to run a few more miles is free, so the marginal cost is zero. D. meeting a friend at the local track to run a few more miles is guaranteed to be fun, so the marginal benefit is high.

Question

Dominick Mendez

Business

3 December, 23:08

Although you are really tired after a long run, you are considering meeting a friend at the local track to run a few more miles. You will choose to keep running if Choose one: A the marginal benefit of meeting a friend at the local track to run a few more miles outweighs the marginal cost. B. the marginal benefit of meeting a friend at the local track to run a few more miles exactly equals the marginal cost. C. meeting a friend at the local track to run a few more miles is free, so the marginal cost is zero. D. meeting a friend at the local track to run a few more miles is guaranteed to be fun, so the marginal benefit is high.

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Answers (1)

Know the Answer?

Hugh Barton · Answer 1

The correct answer is (A)

Explanation:

Marginal benefit and marginal cost are two important factors to make a decision. If the marginal benefit of meeting a friend is higher than the marginal cost I will keep running to meet a friend. Because I am tired, I want the marginal benefit to exceed the marginal cost. In case I am not tired I will choose to meet the friend if MC=MR.