Making “marginal” decisions involves a. calculating the total benefits of an activity and determining if you...
Making “marginal” decisions involves a. calculating the total benefits of an activity and determining if you are satisfied with that amount. Unit 1 Examination 54 Principles of Economics b. calculating the total costs of an activity and determining if you can afford to incur that expenditure. c. comparing the additional benefits and the additional costs of an activity. d. calculating the average benefit and the average cost of an activity to determine if it is worthwhile to undertake that activity.
Homework Answers
Answer : The answer is option c.
Because for any activity the marginal decision shows the comparison between marginal benefit and marginal cost. Marginal benefit means additional benefit from additional one unit of activity and marginal cost means additional cost of that additional unit of activity. Therefore, option c is correct.
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