Based on the Figure 3.6,what is the optimal choice for hours spent on this activity?
A) 0
B) 8
C) There is no optimal choice.
D) There is not enough information to determine the optimal choice.

Question

Based on the Figure 3.6,what is the optimal choice for hours spent on this activity? 
A) 0 
B) 8 
C) There is no optimal choice. 
D) There is not enough information to determine the optimal choice.

Quizplus · Accepted Answer

The optimal choice for hours spent on this activity can be determined by finding the point at which the marginal benefit (MB) equals the marginal cost (MC), which in this case is at 8 hours. Beyond 8 hours, the marginal cost exceeds the marginal benefit, so it is not optimal to spend more hours on the activity.