CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

The marginal benefit of going to a movie during the week is currently $6 for you. Assume that the price of going to the movies, $4, measures its marginal cost. Following the economic decision rule, you will ______
A. continue going to movies until the marginal benefit of doing so falls to zero.
B. choose not to go to any movies during the week.
C. continue going to movies until the marginal benefit of doing so falls below $4.
Explanation: You will continue to go to the movies until the marginal benefit falls beneath the marginal cost.

User Contributed Comments 3

User Comment
Criticull If marginal benefit = marginal cost, you are indifferent, it does not mean you won't go or you will go.
tomalot You will leave half way through the second movie
thebkr7 Unless it's Starwars!
You need to log in first to add your comment.