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People use _____ to determine how many hours to work, and businesses use _____ to determine how much of their product they are willing to supply to the market.

a) marginal analysis; marginal analysis
b) production efficiency; marginal analysis
c) marginal analysis; allocative efficiency
d) allocative efficiency; production efficiency

1 Answer

4 votes

Answer:

a) marginal analysis; marginal analysis

Step-by-step explanation:

People use marginal analysis to determine how many hours to work, and businesses use marginal analysis to determine how much of their product they are willing to supply to the market.

Marginal analysis is the analysis or examination of profit or benefit realized by the business by adding extra cost in the similar activity or producing extra unit of goods and services. It helps the management to take decision on quatity of product to be produced and used as base for quantitive financial analysis.

People use marginal analysis to determine how many hours to work to get maximum benefits.

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