Your neighbour is mowing her yard one afternoon when she stops to have some lemonade.She drinks one glass and is now deciding whether or not to have a second glass.This is an example of _____ analysis.
A) marginal
B) benefit
C) cost
D) equilibrium

Question

Quizplus · Accepted Answer

Marginal analysis involves deciding whether to do something more or less based on the marginal benefit versus the marginal cost. In this scenario, the neighbour is considering whether to have a second glass of lemonade, which is a marginal decision. By weighing the additional benefit of having another glass of lemonade against the additional cost (such as calories, sugar intake, or the effort of going to refill the glass), the neighbour can decide whether the marginal benefit is greater than the marginal cost and whether it's worth having another glass.

Your Neighbour Is Mowing Her Yard One Afternoon When She