Economics involves marginal analysis because
A) most decisions involve changes from the present situation.
B) marginal benefits always exceed marginal costs.
C) marginal costs always exceed marginal benefits.
D) much economic behavior is irrational.

Question

Quizplus · Accepted Answer

Economics involves marginal analysis because most decisions involve changes from the present situation. Marginal analysis examines the effects of incremental changes on costs and benefits and helps decision-makers evaluate the trade-offs involved in taking action or making a decision. In most situations, decisions involve changes in the current situation, and that's where marginal analysis comes in handy.

Economics Involves Marginal Analysis Because