While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75. She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of:

Question

Quizplus · Accepted Answer

Sally is weighing the marginal cost (extra 25 cents) against the marginal benefit (getting the medium fries) of buying the value meal instead of individual items. This decision-making process is known as marginal analysis.

While Waiting in Line to Buy One Cheeseburger for $1