Question

1. Suppose you are trying to decide whether to study for your economics course or play basketball. 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 study?(show work) Playing basketball carries no mental cost. You gain$4 for the first hour played, $2 for the second hour, $1 for the third hour and 0$ for the fourth hour. b) if you choose to play basketball, how many hours should you optimally play? (show work) c) in words, what is the opportunity cost of playing basketball and the opportunity cost of studying for economics? calculate each opportunity cost D) if you can only choose one activity, should you study or play basketball? why?

Answer 1