Question

Every week, Kate plays chess for one hour, and her grade on each psych test is 90 percent. Last week, after playing for one hour, Kate considered playing for another hour. She decided to play for another hour and cut her study time by one hour. But last week, her psych grade fell to 80 percent. Did Kate make her decision on the margin? O A. Kate's decision was not made at the margin because she didn't compare the total benefit and total cost of a first hour of playing chess. O B. Kate's decision was not made at the margin because the marginal cost of a lower grade always exceeds its marginal benefit OC. Kate made her decision at the margin because she considered the benefit and cost of one additional hour of playing chess. OD. Kate's decision was made at the margin because her grade fell by only 10 percentage points. O E. Kate's decision was not made at the margin because she could have chosen not to play chess but didn't.

Answer 1

C is correct

Decision at the margin is done when a small change of a variable leads to a change in another one. Then the choice is to pick whether that changes increases the marginal utility of him/her. Here, Kate considered the benefit and cost of playing an extra hour of chess before taking her decision. So, the decision is made at the margin.