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According to the marginal cost and marginal benet principle, which one of the following scenarios describes a good, rational, economic decision (from a purely nancial
According to the marginal cost and marginal benet principle, which one of the following scenarios describes a good, rational, economic decision (from a purely nancial point of View)? Q A student attends a four year university and receives a Bachelor's degree at a total economic cost of $220,000. The student's additional life time earnings from this degree amount to $200,000. A business person can use a building he owns himself for the purpose of running his own business. If he were to not use this building for his own business and rent it out, he would earn $30,000 per year from the rent. If he were to work for another company, he can earn $45,000 as an employee. If he were to run his own business, his total accounting prot would be $50,000. The person chooses to not run his own business and work as an employee for another company. 0 A sports franchise hires an accomplished athlete and pays this person $16 million per year. The additional earnings for the club because of this new signing is $15 million peryean O A parent of three children accepts a job that pays $18,000 per year. The parent's additional expenses (daycare, transportation, etc.) are $20,000 per year. Q Afast food restaurant hires a worker at a total (wages and benets) cost of $23,000 per year. Because of the hiring of this worker the restaurant's earnings increase by $20,000
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