For which of the following decisions would marginal analysis be MOST relevant?
A)Should I invest all of my savings in real estate or should I keep it all in a savings account?
B)After I graduate from college, should I go to graduate school or should I get a job?
C)After meeting my basic needs, how should I allocate the remainder of my monthly budget?
D)Should I keep a pet?

Question

Quizplus · Accepted Answer

Marginal analysis involves making decisions based on the additional benefits and costs of each option. In this case, deciding how to allocate the remaining budget involves considering the marginal benefit of each additional purchase or expenditure compared to its marginal cost. The other options do not involve such a clear comparison of marginal benefits and costs.

For Which of the Following Decisions Would Marginal Analysis Be