A good example of marginal reasoning would be:
A)the addition to total sales from spending an additional dollar on advertising.
B)the sales resulting from total spending on advertising.
C)the decision to shut down production.
D)the decision to maximize profits rather than sales.

Question

Quizplus · Accepted Answer

Marginal reasoning involves analyzing the benefits and costs of making an incremental change. In this example, the analysis focuses on the additional sales that can be generated from spending an extra dollar on advertising, which is an incremental change. Marginal reasoning involves analyzing the potential benefits and costs of an additional unit. In this case, the additional dollar spent on advertising would result in a marginal increase in sales, making it a good example of marginal reasoning. The other choices are not necessarily examples of marginal reasoning but may involve other types of decision-making analysis.

A Good Example of Marginal Reasoning Would Be