|University||Nanyang Technological University (NTU)|
Economics Assignment, NTU, Singapore A more straightforward example of this concept of Marginal Benefit (MB), Marginal Cost, and Opportunity Cost
A more straightforward example of this concept of Marginal Benefit (MB), Marginal Cost, and Opportunity Cost you can all relate to could help you in your Economics 1 Examination! Imagine you have one more night’s study before the exam but you also have a part-time job in retail. If you study your examination score will go from 60/100 to 80/100.
However, you have missed out on the opportunity to work at a cost, Marginal Cost of $50. Every student is different just like every consumer, so some of you will decide to study because you think the 20 is of more benefit than the $50 a cost. Others of you will take the money because you need it more than the marks and so the benefit of $50 outweighs the cost of 20.
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