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

Question

Quizplus · Accepted Answer

People make decisions at the margin by comparing the costs and benefits of an additional unit of something. They weigh the additional benefits against the additional costs and if the benefits exceed the costs, they will likely make the choice. This is known as marginal analysis and helps individuals and businesses make rational decisions.

How Do People Make Decisions at the Margin