Rational people make decisions "at the margin" by comparing
A)average costs and benefits.
B)total costs and benefits.
C)additional costs and benefits.
D)opportunity costs and benefits.

Question

Quizplus · Accepted Answer

Rational people make decisions "at the margin" by comparing the additional costs and benefits of each decision. "At the margin" refers to the changes in costs and benefits that come from making a specific decision. Choosing the option that has the greatest additional benefit compared to its additional cost is the most rational decision because it maximizes the value received from the decision.

Rational People Make Decisions "At the Margin" by Comparing