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3. N irali is a student at the University of Ainsley. She has 5 hours to study for two exams today. The tables below show
3. N irali is a student at the University of Ainsley. She has 5 hours to study for two exams today. The tables below show Nirali's expected scores given the amount of time she studies for each exam. Number of Hours Expected Score on Number of Hours Expected Score on Spent Studying Microeconomics Exam Spent Studying History Exam Microeconomics (IOU-point scale) History (lOO-point scale) (a) Nirali spends 3 hours studying microeconomics and 2 hours studying history. Calculate her gain from the second hour spent studying history. (b) Calculate Nirali's opportunity cost of the second hour spent studying history. (0) Assume Nirali increases the time she allocates to studying history. What happens to the opportunity cost of studying history? Explain. ((1) Assume that Nirali has a goal of maximizing the sum of her test scores (the score on microeconomics plus the score on history). How many hours should she study for each exam? (e) N irali learns that her tennis practice has been canceled, freeing up an additional hour for studying. Given your answer to part (d), will Nirali allocate the additional hour to studying microeconomics or to studying history to maximize the sum of her test scores? Explain using marginal analysis
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