How do people make decisions at the margin?
A) by following the business cycle
B) by experience
C) by calculating dollar costs
D) by comparing costs and benefits

Question

Quizplus · Accepted Answer

Making decisions at the margin involves weighing the costs and benefits of a decision. This means comparing the additional costs and benefits of choosing one option over another. It often involves calculating the dollar costs, but also takes other factors into account such as experience and the business cycle. Therefore, the best choice is D, by comparing costs and benefits.

How Do People Make Decisions at the Margin