Question

Marginal analysis studies how individuals decide: a. whether to go to college. b. whether to live on the margin of society. c. how much down payment to make when buying stocks. d. whether to do a bit more of an activity versus a bit less of it.

Answer 1

Correct option is (d)

Step-by-step explanation:

Marginal analysis is a decision making tool used by managers to identify if an additional effort on an activity or incurring additional cost would be beneficial or yield more profits.

In other words, individuals decide on the basis of marginal analysis whether to work more or a activity or not based on the outcome. If the outcome is profitable, then the individual would choose to work harder and vice versa.