Essay
After three years at an expensive college, Pierre realizes that he doesn't want to finish school but really wants to be a chef.When Pierre suggests that he leave college for culinary school, his parents insist that he stay for one more year to get his degree.Which of the following is true?
A.Pierre's parents are correct: if he leaves college, it is as though he has wasted three years of tuition.
B.Pierre's parents are wrong: the marginal benefit to Pierre of another year of college is less than the marginal cost of college.
C.Pierre's parents are wrong: the marginal benefit to Pierre of another year of college is greater than the marginal cost of college.
D.It is impossible to tell who is correct.
Correct Answer:

Verified
Pierre's parents are wrong: th...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q21: The purpose of behavioral economics is to
Q45: Scenario: Accounting and Economic Profit<br>Rather than put
Q46: Wear and tear on machinery from usage
Q47: (Table: Slices of Pizza) Look at the
Q49: A "how much" decision is best made
Q51: (Table: Expected Exam Scores from Studying Economics
Q53: Figure: The Optimal Quantity<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1063/.jpg" alt="Figure:
Q54: George owns a gun range in Texas.He
Q55: In economic analysis, the principle of marginal
Q162: Any expense that is not recoverable is