When economic choice involves an adjustment to an existing situation,marginal analysis:
A)has no practical applications or real-world uses.
B)eliminates incorrect decisions and bad choices.
C)involves comparing the additional costs and additional benefits of an activity before deciding.
D)involves examining only the total costs and total benefits of an activity before deciding.
E)guarantees an incorrect decision.

Question

Quizplus · Accepted Answer

Marginal analysis involves comparing the additional costs and additional benefits of an activity before deciding. This helps in making an informed decision by weighing the pros and cons of a particular action. It is particularly useful when making adjustments to an existing situation as it helps to evaluate the impact of any change on the overall outcome. Hence, option C is the correct choice.

When Economic Choice Involves an Adjustment to an Existing Situation,marginal