For the question 1. The answer should be (1) work, (2) movie; because the oppt. cost for watching the movie is $4, but the oppt. cost of going to work is $2 only. So the rational choice in this case, should choose to work instead of watching movie.
For the question 2. The answer should be not to run the additional train, since the marginal cost is greater than the marginal revenue. (Marginal cost of runing the additional train is $4,000), (Marginal revenue of running the additional train is $3,500). Thus, in this case, running the additional train to New Haven is ($500) each. So I would prefer not to run the additional train.
The above case is not difficult if the English is good enough to understand the question.
($500) means -$500 in the sense of accounting!
Good Luck ! and good day!
