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AP Microeconomics 1.5: Cost-Benefit Analysis

Evaluate economic choices by comparing opportunity costs, total benefits, total costs, and the net benefit of each available option.

Syllabus
Effective Fall 2025
Course
AP Microeconomics

Covered syllabus points

CBA-1.A—a. Define opportunity cost. b. Explain the opportunity costs associated with choices. c. Calculate the opportunity costs…CBA-1.B—a. Explain a decision by comparing total benefits and total costs (using a table or a graph when appropriate). b. Calculate total…

1.5 Cost-Benefit Analysis question 1

[Maximum number: 2]

Nirali is a student at the University of Ainsley. She has 5 hours to study for two exams today. The tables below show Nirali's expected scores given the amount of time she studies for each exam.

Table for Question 1.5 Cost-Benefit Analysis question 1 — AP Microeconomics
Table for Question 1.5 Cost-Benefit Analysis question 1 — AP Microeconomics

Question (a)

(a)

Calculate Nirali's opportunity cost of the second hour spent studying history.

[ 1 ]

Question (b)

(b)

Assume Nirali increases the time she allocates to studying history. What happens to the opportunity cost of studying history? Explain.

[ 1 ]

1.5 Cost-Benefit Analysis question 2

[Maximum number: 1]

The table below shows the total cost and total benefit of advertisements placed by AZY Foods, a firm in the retail food market.

Table for Question 1.5 Cost-Benefit Analysis question 2 — AP Microeconomics

Calculate the total net benefit of placing three advertisements. Show your work.

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