The concept of marginality is important in economics because
A) individuals make decisions at the margin.
B) marginal decisions indicate a lack of importance.
C) individuals make decisions based on tastes only.
D) large expenditures are the only factor influencing consumption.

Question

Quizplus · Accepted Answer

Marginality refers to the notion that individuals make decisions at the margin, or the point where a decision results in a small change in benefit or cost. In other words, individuals weigh the costs and benefits of an additional unit of consumption or production before making a decision, which is a fundamental concept in microeconomics. Therefore, choice A is the correct answer. B, C, and D are incorrect because they do not reflect this important economic principle.

The Concept of Marginality Is Important in Economics Because