1. Working with Numbers and Graphs Q1 Suppose the marginal costs of reading are constant at $5 per hour, while the marginal benefits of reading decline (over time) as more reading is performed. In particular, suppose the following table contains the marginal benefit associated with various levels of hours spent reading. Time Spent Reading (Hours) 3 12 MARGINAL COST, MARGINAL BENEFIT ($ per hour of reading per week) Assume the marginal-benefit curve is a straight line through the two points described in the table. On the following graph, use the blue points (circle symbol) to plot the marginal-benefit curve for reading. Next, use the orange points (square symbol) to plot the marginal-cost curve for reading. Finally, use the black point (plus symbol) to indicate the point corresponding to the efficient amount of reading (that is, the point at which the net benefits of reading are maximized). o 8 3 19 O Marginal Benefits (Dollars per hour) 8 0 3 2 6 9 12 15 18 21 READING (Hours per week) 24 27 30 Marginal-Cost Curve Marginal-Benefit Curve Efficient Point ?

1. Working with Numbers and Graphs Q1 Suppose the marginal costs of reading are constant at $5 per hour, while the marginal benefits of reading decline (over time) as more reading is performed. In particular, suppose the following table contains the marginal benefit associated with various levels of hours spent reading. Time Spent Reading (Hours) 3 12 MARGINAL COST, MARGINAL BENEFIT ($ per hour of reading per week) Assume the marginal-benefit curve is a straight line through the two points described in the table. On the following graph, use the blue points (circle symbol) to plot the marginal-benefit curve for reading. Next, use the orange points (square symbol) to plot the marginal-cost curve for reading. Finally, use the black point (plus symbol) to indicate the point corresponding to the efficient amount of reading (that is, the point at which the net benefits of reading are maximized). o 8 3 19 O Marginal Benefits (Dollars per hour) 8 0 3 2 6 9 12 15 18 21 READING (Hours per week) 24 27 30 Marginal-Cost Curve Marginal-Benefit Curve Efficient Point ?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter1: What Economics Is About

Section: Chapter Questions

Problem 1WNG

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