Your neighbor is mowing her yard one afternoon when she stops to have some lemonade. She drinks one glass and is considering having a second glass. This is an example of:
A)marginal analysis.
B)benefit analysis.
C)cost analysis.
D)equilibrium analysis.

Question

Quizplus · Accepted Answer

Marginal analysis weighs the additional benefit of consuming an additional unit against the additional cost, and in this scenario, the neighbor is evaluating the benefit of having another glass of lemonade after having the first one.

Your Neighbor Is Mowing Her Yard One Afternoon When She