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24 August, 13:39

Matias spent 12 hours studying for an exam, and he received an A on the exam. Normally, he would have spent that time watching TV instead of studying. Matias figures he could have made a B after studying only 6 hours, but he really wanted an A. What is Matias 's marginal cost in terms of TV viewing to move from a B to an A on the exam?

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  1. 24 August, 13:50
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    The marginal cost is not being able to watch TV for 6 hours.

    Explanation:

    The marginal cost is the change in cost when you produce an additional unit of a good. In this case, is what you give up to get a better grade, which is 6 hours of watching TV.
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