Marginal analysis requires that business people who make production decisions always
A) know what average fixed costs are
B) remember what has happened most recently
C) remain forward looking
D) continue producing
E) remain optimistic

Question

Quizplus · Accepted Answer

Marginal analysis involves evaluating the additional benefits and costs of a decision to determine the best course of action. It requires decision-makers to be forward-looking, considering the future implications of their choices rather than focusing solely on past events or fixed costs.

Marginal Analysis Requires That Business People Who Make Production Decisions