Decision making on the margin involves
A) eliminating the additional cost when making a decision.
B) comparing the total cost and the total benefit when making a decision.
C) comparing the marginal cost and marginal benefit when making a decision.
D) comparing the benefits for the social interest to the benefits for the person's self-interest.
E) determining the total benefit of a decision.

Question

Quizplus · Accepted Answer

Decision making on the margin involves comparing the marginal cost and marginal benefit when making a decision. This means considering the additional cost and additional benefit of making a small change or taking a small action. By comparing these two factors, people can make informed decisions about whether the benefits outweigh the costs and whether a particular action is worth taking.

Decision Making on the Margin Involves