Question

Ana P is a college athelete and still has one year of eligibility. He is being recruited by a major basketball club and become a professional basketball player in the NBA. Which of the following thoughts reflects the concepts of marginal analysis?

a. another year of college basketball will make me better prepared in the future, but i risk getting injured if I do so

b. I should have a college degree

c. if i continue college I will give up 2 million in incomr

d. I played an average of 18 games per year as a college player and will play more than 30 games per year in the NBA

e. If I continue in college, I will give up a salary and potential income from endorsements

what is the answer?

Answer 1

Marginal analysis in this case is the additional benefits one gets if one makes a choice of joining basketball compared to the additional costs incurred when the person pursues basketball.

a. Gives the perfect reasoning that Ana will benefit if he takes up basketball, but there is also a cost involved that he might get injured.

b. This is just a statement and no benefits or costs are mentioned.

c. Only the cost which he will lose is mentioned and no benefits are mentioned.

d. This is also just a statement, no costs are mentioned only benefit and comparison.

e. This mentions just the cost.

Thus A is the answer as both benefit and cost is analysed.