Econ Macro assignment

Suppose you are trying to decide whether to study for your econ

omics course or play bas

ketball. Assume that 

you can only choose one activity.   

Studying carries a mental cost of $4 per hour. You gain $10 for

the first hour studying, $8 for the second hour, 

$5 for the third hour, and $2 for the fourth hour.   

a.

If you choose to study, how many hours should you optimally stu

dy?  

Playing basketball carries no ment

al cost. You gain $4 for the 

first hour played, $2 for 

the second hour, $1 for 

the third hour, and $0 f

or the fourth hour.  

b.

If you choose to play basketball, how many hours should you opt

imally play?  

c.

In words, what is the opportunity cost of playing basketball an

d the opportunity cost of studying for 

economics? Calculate eac

h opportunity cost. 

d.

If you can only choose one activity, should you study or play b

asketball? Why?