Homework Answers
Answer:
Part 3:
Marginal benefit is the additional value obtained from one activity than the value of the other activity. Here, the marginal benefit associated with Alisha's decision to study abroad next semester is best captured by additional value of her semester abroad, relative to spending another semester at her home institution.
Correct option is (i).
Part 4:
Marginal cost is the additional cost incurred on one activity than the cost of the other activity. Here, Marginal cost is $12,000.($49,000-$37,000).
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