Marginal Decision Rule

Worksheet 3- Marginal Decision Rule Name: ____________________

Directions:

Choose any activity of interest (like studying or exercising).

1. What is the activity?

Answer:

2. How would you measure the Marginal Benefits of the activity?

Answer:

3. How would you measure the Marginal Costs of the activity?

Answer:

4. State the Marginal Decision Rule.

Answer:

5. On the graph below, graph the Marginal Benefit and Marginal Cost, and mark the optimal quantity of the activity, according to the Marginal Decision Rule.