The use of a mathematical model supported by empirical findings had developed a method of cost effectiveness that can be used in evaluations between educational objectives and goals. Educational time allocation can be studied and developed into a micro-level economic theory of decision. Learning has been defined as increments which can be quantified by successive criterion tests of cognitive achievement. Using an input-output concept of the educational process, a marginal cost model was developed. A programing model was devised based on a multistep approach of learning, specifically using the Swedish IMU (Swedish acronym) Mathematics System for 7th Grade. The most important contribution of the programing model to an economic theory of education seems to be the identification of marginal product of student time with learning rate and a shadow pricing of this time resource that makes price proportional to learning rate, hence inversely proportional to time spent in learning. (MC)