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AP® Microeconomics

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Moderate

Marginal Analysis for Sleeping

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Sam determines that sleeping for an additional 30 minutes each morning would increase his total benefit (utility) for sleep each day from 60 to 70 utils while causing his total utils from hanging out with his friends before school to fall from 100 utils to 85 utils.

If he correctly uses marginal analysis, he will

A

sleep later because his total benefits from sleep will still be lower than his total benefits of hanging out with his friends.

B

not sleep later because the additional benefits of sleep are less than the additional costs from having less time to hang out with his friends.

C

sleep later because the additional benefits of sleeping later are greater than the additional costs in terms of hanging out with his friends.

D

sleep later because the physical benefits of sleep outweigh the emotional benefits of spending time with friends.

E

not sleep later because the total benefits of hanging out with his friends are greater than the total benefits of sleeping.