In what way may marginal analysis be useful in helping to make economic choices?
A) It eliminates impractical or irrelevant information.
B) It eliminates incorrect decisions and bad choices.
C) It involves comparing the additional costs and additional benefits of an activity prior to making a decision.
D) It involves examining only the total costs and total benefits of an activity prior to making a decision.

Question

In what way may marginal analysis be useful in helping to make economic choices?  
A) It eliminates impractical or irrelevant information. 
B) It eliminates incorrect decisions and bad choices. 
C) It involves comparing the additional costs and additional benefits of an activity prior to making a decision. 
D) It involves examining only the total costs and total benefits of an activity prior to making a decision.

Quizplus · Accepted Answer

Marginal analysis involves comparing the additional costs and additional benefits of an activity prior to making a decision. This can be useful in making economic choices as it allows individuals or firms to consider the potential trade-offs and benefits of each additional unit of a particular action. By weighing the costs and benefits at the margin, decision-makers are able to make informed choices that take into account the most relevant and current information. This helps to ensure that decisions are made in a rational and efficient manner, leading to the best possible outcome.

In What Way May Marginal Analysis Be Useful in Helping