Moe has a big exam tomorrow. He considered studying this evening, but decided to go out with Curly instead. Since Moe always chooses rationally, it must be true that:

A. the opportunity cost of studying tonight is less than the value Moe gets from spending time with Curly.

B. the opportunity cost of studying tonight is equal to the value Moe gets from spending time with Curly minus the cost of earning a low grade on the exam.

C. Moe gets more benefit from spending time with Curly than from studying.

D. Moe gets less benefit from spending time with Curly than from studying.

Question

London Harper

Business

28 December, 13:06

Moe has a big exam tomorrow. He considered studying this evening, but decided to go out with Curly instead. Since Moe always chooses rationally, it must be true that:

A. the opportunity cost of studying tonight is less than the value Moe gets from spending time with Curly.

B. the opportunity cost of studying tonight is equal to the value Moe gets from spending time with Curly minus the cost of earning a low grade on the exam.

C. Moe gets more benefit from spending time with Curly than from studying.

D. Moe gets less benefit from spending time with Curly than from studying.

+5

Answers (1)

Know the Answer?

Hopkins · Answer 1

A

Explanation:

It would not be C because it is not specific enough. Moe must feel confident enough about the exam that does not feel the need to study on this particular night, and that his time would be better spent with Curly.