Question

Select all that apply.

Select all the items involved in marginal analysis.

calculating the marginal cost of a choice

choosing the option that makes you worse off

randomly making a decision

figuring out the marginal benefit of an alternative

Answer 1

I would select 1, 2 and 4 because you need the information from all of them to make the best analytical decision.

Answer 2

The correct answers are A) calculating the marginal cost of a choice and D) figuring out the marginal benefit of an alternative.

The items involved in a marginal analysis are: calculating the marginal cost of a choice and figuring out the marginal benefit of an alternative.

When we are referring to a marginal analysis in financial and accounting terms, it is the revision of the additional benefits of doing something compared to the additional costs of the activity. This is a good tool when corporations have to make decisions in order to maximize their benefits. The marginal analysis helps us to make the best decision before acting. So it is true that the items involved in a marginal analysis are: calculating the marginal cost of a choice and figuring out the marginal benefit of an alternative.