Asked by Krysteena Hudson on Jun 23, 2024
Verified
Your professor loves her work, teaching math. She has been offered other positions in the corporate world that would increase her income by 15 percent, but she has decided to continue working as a professor. Her decision would not change unless the marginal
A) cost of teaching increased.
B) benefit of teaching increased.
C) cost of a corporate job increased.
D) benefit of a corporate job decreased.
Marginal Cost
The rise in overall expenses due to the production of an additional unit.
Marginal Benefit
The extra pleasure or benefit derived from consuming an additional unit of a product or service.
Corporate Job
Employment within a company or organization that usually involves office-based work, specialized roles, and hierarchical positions.
- Understand the concept of marginal cost and marginal benefit and their roles in decision-making.
Verified Answer
HB
Harpreet BallaganJun 24, 2024
Final Answer :
A
Explanation :
The professor's decision to continue teaching despite lower pay suggests she values the non-monetary benefits of teaching more than the higher income from corporate jobs. If the marginal cost of teaching increased (e.g., more work hours, less personal time), it might outweigh the non-monetary benefits she currently enjoys, potentially leading her to reconsider her decision.
Learning Objectives
- Understand the concept of marginal cost and marginal benefit and their roles in decision-making.
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