Moe has a big exam tomorrow. He considered studying this evening, but decided to hang out with Curly instead. If neither activity involves any explicit costs, and 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

Social Studies

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24 September, 12:15

Moe has a big exam tomorrow. He considered studying this evening, but decided to hang out with Curly instead. If neither activity involves any explicit costs, and 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.

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Answers (1)

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Ally Norton · Answer 1

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

Explanation:

Moe gets more benefit from spending time with Curly than from studying, because if both have zero costs then Moe chose based on the option that gave him the most benefits.