AP® Microeconomics

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Marginal Analysis: Marginal Benefits and Costs of Video Games

APMICR-QVF1PP

Based on the information in the graph above which represents John's marginal benefits and marginal costs from playing video games, if John is currently playing video games for 1 hour a day, he should

A

increase the amount the amount of time he plays video games to 2 hours so that his marginal costs and benefits will be equal.

B

continue to play video games for 1 hour per day because that is where the marginal benefits exceed marginal costs by the greatest amount.

C

increase the amount of time he plays video games to 3 hours because at that point the marginal benefit is still positive.

D

decrease the amount of time he plays video games to zero because the value of alternative uses of his time is greater.

E

increase the amount of time he plays video games to 4 hours because this is the point where marginal benefit becomes zero.