Decision making on the margin involves
A) comparing the marginal cost and marginal benefits when making a decision.
B) comparing the total cost and the total benefit when making a decision.
C) eliminating the additional cost when making a decision.
D) determining the total benefits of a decision.
E) comparing the benefits from the social interest to the benefits from the person's self-interest.

Question

Quizplus · Accepted Answer

Decision making on the margin involves comparing the marginal cost and marginal benefits when making a decision. This means that individuals weigh the additional cost and additional benefit of a decision, rather than focusing solely on the total cost or total benefit. By considering the extra (or marginal) costs and benefits, individuals can make more informed decisions about whether to take a specific action or engage in a particular behavior.

Decision Making on the Margin Involves