Asked by
Brandon Henige
on Nov 11, 2024
Verified
When economic choice involves an adjustment to an existing situation,marginal analysis:
A) has no practical applications or real-world uses.
B) eliminates incorrect decisions and bad choices.
C) involves comparing the additional costs and additional benefits of an activity before deciding.
D) involves examining only the total costs and total benefits of an activity before deciding.
E) guarantees an incorrect decision.
Marginal Analysis
An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.
Additional Costs
Expenses that are not initially planned or anticipated, which can arise during the course of a project or as part of an operation.
- Understand the concept of rational behavior assumption in economics and its effects on decision-making processes.
Verified Answer
KA
Learning Objectives
- Understand the concept of rational behavior assumption in economics and its effects on decision-making processes.