1. Suppose the marginal costs of reading are consatnt and the marginal benefits of reading decline(over time). Initially, the marginal benefits of reading are greater than the marginal costs. draw the marginal benefit curve and marginal cost cuve of studying, and identify the efficient amount of reading. then explain why the eficient point is the point at which the net benefits of reading are maxmized.
2. using the diagram you drew in question1, lower the marginal costs of reading and identify the new efficient amount of reading. also, identify the additional net benefits derived as a result of the lower marginal cost of reading.
3. jim could undertake activity X but chooses not to. Draw the marginal benefit and cost cues for activity X from Jim's perspective.(Draw the marginal cost curve as upwad sloping or horizontal but definitely above a declining marginal benefit curve.)