When a person is making a decision at the margin he or she is comparing the additional benefit of that activity to the additional cost of the proposed action.

Question

Quizplus · Accepted Answer

When a person is making a decision at the margin, he or she is considering the marginal benefit (additional benefit) of the proposed action compared to the marginal cost (additional cost). This helps in determining whether the proposed action is worth pursuing or not.

When a Person Is Making a Decision at the Margin