When considering whether or not to consume a second slice of cake, an individual is following marginal thinking if she compares the total cost of consuming both the first and second slices with their total benefit before making a decision.

Question

Quizplus · Accepted Answer

Marginal thinking involves comparing the additional benefit and cost of consuming one more unit, not the total cost and benefit of all units consumed.

When Considering Whether or Not to Consume a Second Slice