When economic choice involves an adjustment to an existing situation, marginal analysis
A)has no practical applications or real-world uses
B)eliminates incorrect decisions and bad choices
C)involves comparing the additional costs and additional benefits of an activity before deciding
D)involves examining only the total costs and total benefits of an activity before deciding
E)none of the above

Question

Quizplus · Accepted Answer

Marginal analysis involves comparing the additional costs and additional benefits of an activity before deciding. This allows for a more precise decision-making process and ensures that the benefits outweigh the costs. It is a practical tool used in real-world situations to make informed economic choices.

When Economic Choice Involves an Adjustment to an Existing Situation