Decision makers engage in marginal thinking by
A) comparing the average cost and benefit of all units produced.
B) comparing the sum of the cost and benefit of all units produced.
C) ignoring benefits,which are a subjective determination.
D) comparing the benefit of one additional unit with its cost to produce.
E) focusing on mass production,which often keeps costs down.

Question

Quizplus · Accepted Answer

Marginal thinking involves comparing the benefit of producing one additional unit with its cost of production. This allows decision makers to determine whether producing additional units will be profitable or not.

Decision Makers Engage in Marginal Thinking by