Question

Most real-world choices aren't about getting all of one thing or another; instead, most choices involve __________, which includes comparing the benefits and costs of choosing a little more or a little less of a good.

A. utilityB. marginal analysisC. the budget constraintD. consumption

Answer 1

Option (B) is correct.

Step-by-step explanation:

The firms uses the marginal analysis of the goods for making decision about the production.

Marginal analysis refers to the analysis of the costs and benefits that are associated with the additional goods produced. The firm can compare the additional benefit with the additional cost that is associated with the production of additional goods.

Firms using this method for making decisions which increases their potential profits.