When a teacher in a private school points out to her high school principal that since there are empty seats in all classrooms, the cost of additional students is really zero, she is using the
A)law of comparative advantage.
B)principle of marginal analysis.
C)theory of externalities.
D)notion of the cost decreases of the service sector.
E)concept of opportunity cost.

Question

Quizplus · Accepted Answer

The teacher is using the principle of marginal analysis, which involves weighing the costs and benefits of producing or providing one more unit of a good or service. In this case, the cost of adding one more student is zero since there are empty seats, so it makes sense to consider adding more students.

When a Teacher in a Private School Points Out to Her