Question

6. Scarcity, opportunity cost, and marginal analysis Aa Aa Latasha ls training for a triathlon, a timed race that combines swimming, cycling, and running. Consider the following statement: Because her pool sessions are helping her swim much reduce by one hour per in the swimming pool; however, her husband says that she should stop doing any cycling and running and spend all 20 hours per week in the pool. faster, Latasha plans to week the time she spends training on the bike and increase by one hour the time she spends Which basic principle of individual cholce does Latasha's decision lustrate that her husband's advice does not O People usually exploit opportunities to benefit themselves. O All costs are opportunity costs Resources are scarce. O Many decisions are taken using marginal thinking

Answer 1

Option 4. Many decisions are taken using marginal thinking

Explanation: The marginal benefit of an additional pool session is higher than the marginal benefit of a biking session. Therefore, Latasha decided to spend more time in the pool. This is marginal thinking in decision making. However, her husband does not think in this way.