Rational behavior requires "thinking at the margin." Which of the following is an example of this type of thinking?
A) deciding whether a second burger is worth the extra $2
B) deciding whether your overtime pay is worth working on Saturday (your day off)
C) deciding whether to pay a fine for polluting the local harbor or installing antipollution machinery
D) All of these are examples of "thinking at the margin."

Question

Quizplus · Accepted Answer

All of the options involve considering the additional benefits or costs of an action in small increments or at the margin. Deciding whether to purchase a second burger for an extra $2, deciding whether to work overtime on a day off for additional pay, or considering the relative costs of paying a fine or investing in antipollution machinery are all decisions that require weighing marginal costs and benefits.

Rational Behavior Requires "Thinking at the Margin